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Why Is Corpay (CPAY) Down 12% Since Last Earnings Report?
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A month has gone by since the last earnings report for Corpay (CPAY - Free Report) . Shares have lost about 12% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Corpay due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Corpay Q4 Earnings Beat Estimates
Corpay reported mixed fourth-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
CPAY’s earnings per share of $5.36 beat the consensus estimate by a slight margin and increased 20.7% year over year. The total revenues of $1 billion missed the consensus estimate by 1.5% but grew 10.4% from the year-ago quarter.
Corpay's Segmental Results
Revenues from corporate payments amounted to $346.2 million, increasing 38% year over year, surpassing our estimate of $324.4 million. Direct business growth, rising demand for the full suite of payment solutions and a surge in cross-border revenues benefit the segment’s revenues.
Vehicle payments’ revenues of $497.7 billion declined marginally from the year-ago quarter. This figure missed our estimate of $549.9 million. Consistent strong sales, the array of products and channels and geographic diversification drive the segment’s revenues.
Lodging payments posted revenues of $120.9 million, gaining 1% from the year-ago quarter. The reported figure beat our expectation of $113.7 million. Improvement in same-store sales in CPAY’s workforce business fuels the segment’s revenues.
CPAY's Margins
EBITDA increased 12.4% from the year-ago quarter to $571.2 million, missing our projection of $599 million. The EBITDA margin was 55.2%, which moved up 100 basis points from the fourth quarter of 2023 but lagged our estimate of 56.9%.
Balance Sheet & Cash Flow of CPAY
Corpay exited the fourth quarter of 2024 with cash and cash equivalents of $1.6 billion compared with $1.3 billion in the third quarter of 2024. The long-term debt was $5.2 billion compared with $5.3 billion in the preceding quarter.
CPAY generated $648.7 million in cash from operating activities in the quarter. Capital expenditure amounted to $44.1 million.
Corpay's 2025 Outlook
For 2025, CPAY raised the revenue guidance to $4.35-$4.45 billion from the preceding quarter’s view of $3.98-$4.01 billion. The guidance for adjusted net income per diluted share was hiked to $20.75-$21.25 from the previous quarter’s view of $18.90-$19.10.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.05% due to these changes.
VGM Scores
At this time, Corpay has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Corpay has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Corpay (CPAY) Down 12% Since Last Earnings Report?
A month has gone by since the last earnings report for Corpay (CPAY - Free Report) . Shares have lost about 12% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Corpay due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Corpay Q4 Earnings Beat Estimates
Corpay reported mixed fourth-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
CPAY’s earnings per share of $5.36 beat the consensus estimate by a slight margin and increased 20.7% year over year. The total revenues of $1 billion missed the consensus estimate by 1.5% but grew 10.4% from the year-ago quarter.
Corpay's Segmental Results
Revenues from corporate payments amounted to $346.2 million, increasing 38% year over year, surpassing our estimate of $324.4 million. Direct business growth, rising demand for the full suite of payment solutions and a surge in cross-border revenues benefit the segment’s revenues.
Vehicle payments’ revenues of $497.7 billion declined marginally from the year-ago quarter. This figure missed our estimate of $549.9 million. Consistent strong sales, the array of products and channels and geographic diversification drive the segment’s revenues.
Lodging payments posted revenues of $120.9 million, gaining 1% from the year-ago quarter. The reported figure beat our expectation of $113.7 million. Improvement in same-store sales in CPAY’s workforce business fuels the segment’s revenues.
CPAY's Margins
EBITDA increased 12.4% from the year-ago quarter to $571.2 million, missing our projection of $599 million. The EBITDA margin was 55.2%, which moved up 100 basis points from the fourth quarter of 2023 but lagged our estimate of 56.9%.
Balance Sheet & Cash Flow of CPAY
Corpay exited the fourth quarter of 2024 with cash and cash equivalents of $1.6 billion compared with $1.3 billion in the third quarter of 2024. The long-term debt was $5.2 billion compared with $5.3 billion in the preceding quarter.
CPAY generated $648.7 million in cash from operating activities in the quarter. Capital expenditure amounted to $44.1 million.
Corpay's 2025 Outlook
For 2025, CPAY raised the revenue guidance to $4.35-$4.45 billion from the preceding quarter’s view of $3.98-$4.01 billion. The guidance for adjusted net income per diluted share was hiked to $20.75-$21.25 from the previous quarter’s view of $18.90-$19.10.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.05% due to these changes.
VGM Scores
At this time, Corpay has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Corpay has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.