We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Corpay (CPAY) Q1 Earnings Beat Estimates, Revenues Miss
Read MoreHide Full Article
Corpay (CPAY - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
CPAY’s earnings per share of $4.1 beat the consensus estimate by a slight margin and increased 7.9% from the year-ago quarter. However, the total revenues of $935.25 million missed the consensus estimate by a slight margin but rose 3.8% year over year.
Vehicle payments’ revenues of $494.1 billion decreased marginally from the year-ago quarter. This figure missed our anticipation of $514.6 million. The decline was caused by the soft economy of the U.K., which impacted volumes in specific industry sectors.
Revenues from Corporate payments amounted to $265.4 million, up 17% year over year, surpassing our estimate of $244.8 million. Solid growth across spends volume transactions and customers resulted in the surge of this segment’s revenues.
Lodging payments reported revenues of $111.3 million, declining 9% from the year-ago quarter. The reported figure lagged our estimate of $129.3 million. The downfall was caused by macro weakness, along with issues in converting to a new IT system.
Margins
EBITDA rose 5% from the year-ago quarter to $482.4 million, beating our estimated $468.8 million. The EBITDA margin of 51.6% grew 60 basis points from the first quarter of 2023, surpassing our expectation of 50.1%.
Balance Sheet & Cash Flow
CPAY exited first-quarter 2024 with cash and cash equivalents of $1.3 billion compared with $1.4 billion in fourth-quarter 2023. The long-term debt of $4.9 billion compares with $4.6 billion in the preceding quarter.
Corpay generated $350.2 million in cash from operating activities in the quarter. Capital expenditure amounted to $41.2 million.
2024 Outlook
CPAY lowered the guidance for 2024, wherein it expects revenues of $3.96-$4.04 billion compared with $4.04-$4.12 billion stated previously. The revised range is lower than the Zacks Consensus Estimate of $4.07.
Adjusted net income per diluted share is expected to be s$18.80-$19.20 compared with $19.20-$19.60 previously. The range is lower than the consensus estimate of $19.37
CAR’s adjusted loss was $3.21 per share, whereas the Zacks Consensus Estimate was pegged at a loss of $3.15 and the year-ago earnings were $7.72. Total revenues of $2.55 billion beat the consensus estimate by a slight margin but decreased marginally year over year.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.38 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Corpay (CPAY) Q1 Earnings Beat Estimates, Revenues Miss
Corpay (CPAY - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
CPAY’s earnings per share of $4.1 beat the consensus estimate by a slight margin and increased 7.9% from the year-ago quarter. However, the total revenues of $935.25 million missed the consensus estimate by a slight margin but rose 3.8% year over year.
Corpay, Inc. Price and EPS Surprise
Corpay, Inc. price-eps-surprise | Corpay, Inc. Quote
Segmental Results
Vehicle payments’ revenues of $494.1 billion decreased marginally from the year-ago quarter. This figure missed our anticipation of $514.6 million. The decline was caused by the soft economy of the U.K., which impacted volumes in specific industry sectors.
Revenues from Corporate payments amounted to $265.4 million, up 17% year over year, surpassing our estimate of $244.8 million. Solid growth across spends volume transactions and customers resulted in the surge of this segment’s revenues.
Lodging payments reported revenues of $111.3 million, declining 9% from the year-ago quarter. The reported figure lagged our estimate of $129.3 million. The downfall was caused by macro weakness, along with issues in converting to a new IT system.
Margins
EBITDA rose 5% from the year-ago quarter to $482.4 million, beating our estimated $468.8 million. The EBITDA margin of 51.6% grew 60 basis points from the first quarter of 2023, surpassing our expectation of 50.1%.
Balance Sheet & Cash Flow
CPAY exited first-quarter 2024 with cash and cash equivalents of $1.3 billion compared with $1.4 billion in fourth-quarter 2023. The long-term debt of $4.9 billion compares with $4.6 billion in the preceding quarter.
Corpay generated $350.2 million in cash from operating activities in the quarter. Capital expenditure amounted to $41.2 million.
2024 Outlook
CPAY lowered the guidance for 2024, wherein it expects revenues of $3.96-$4.04 billion compared with $4.04-$4.12 billion stated previously. The revised range is lower than the Zacks Consensus Estimate of $4.07.
Adjusted net income per diluted share is expected to be s$18.80-$19.20 compared with $19.20-$19.60 previously. The range is lower than the consensus estimate of $19.37
Currently, CPAY carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Avis Budget Group, Inc. (CAR - Free Report) reported mixed first-quarter 2024 results.
CAR’s adjusted loss was $3.21 per share, whereas the Zacks Consensus Estimate was pegged at a loss of $3.15 and the year-ago earnings were $7.72. Total revenues of $2.55 billion beat the consensus estimate by a slight margin but decreased marginally year over year.
Equifax Inc. (EFX - Free Report) reported mixed first-quarter 2024 results.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.38 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.