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Corpay Earnings Outpace Estimates in Q1, Revenues Increase 7.5% Y/Y
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Corpay, Inc. (CPAY - Free Report) reported mixed first-quarter 2025 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
CPAY’s earnings per share of $4.51 surpassed the consensus estimate by a slight margin and increased 10% year over year. The total revenues of $1 billion missed the consensus estimate by a slight margin but gained 7.5% from the year-ago quarter.
The stock has gained 7.2% over the past year compared with its industry's 21.2% rally and the 9.1% growth of the Zacks S&P 500 composite.
Vehicle payments’ revenues of $487.1 million declined marginally from the year-ago quarter. This figure missed our estimate of $506.7 million. Despite a marginal decline, CPAY showed promising growth across Brazil, fueled by an increase in toll tags and electric vehicle offerings across the U.K. and Europe.
Revenues from corporate payments amounted to $352.7 million, increasing 33% year over year, beating our estimate of $335.7 million. The rise can be attributed to strong sales of corporate payment solutions, coupled with a surge in payables revenues and cross-border sales, driven by FX rate volatility from the changes in tariff policy.
Lodging payments posted revenues of $110.2 million, declining by a slight margin from the year-ago quarter. The reported figure missed our estimate of $115.8 million. Low airline revenues and volume softness resulted in the marginal decline of this segment’s revenues.
CPAY’s Margins
EBITDA increased 7.6% from the year-ago quarter to $519.3 million, surpassing our estimation of $508 million. The EBITDA margin was 55.2%, flat with the year-ago quarter.
Balance Sheet & Cash Flow of CPAY
Corpay exited the first quarter of 2025 with cash and cash equivalents of $1.6 billion, flat with the fourth quarter of 2024. The long-term debt was $5.9 billion compared with $5.2 billion in the preceding quarter.
CPAY generated $74.2 million in cash from operating activities in the quarter. Capital expenditure amounted to $44.8 million.
Corpay’s 2025 Outlook
For 2025, CPAY raised the revenue guidance to $4.38-$4.46 billion from the preceding quarter’s view of $4.35-$4.45 billion. The mid-point ($4.42 billion) of the guided range meets the Zacks Consensus Estimate for revenues.
The guidance for adjusted net income per diluted share was updated to $20.80-$21.20 from the previous quarter’s view of $20.75-$21.25. The mid-point ($21) of the guided range is slightly lower than the Zacks Consensus Estimate for earnings per share.
FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.
Gartner, Inc. (IT - Free Report) posted first-quarter 2025 results wherein earnings surpassed the Zacks Consensus Estimate and revenues met the same.
IT’s adjusted earnings per share of $2.98 beat the Zacks Consensus Estimate by 9.6% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion met the consensus estimate and improved 4.2% year over year.
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Corpay Earnings Outpace Estimates in Q1, Revenues Increase 7.5% Y/Y
Corpay, Inc. (CPAY - Free Report) reported mixed first-quarter 2025 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
CPAY’s earnings per share of $4.51 surpassed the consensus estimate by a slight margin and increased 10% year over year. The total revenues of $1 billion missed the consensus estimate by a slight margin but gained 7.5% from the year-ago quarter.
The stock has gained 7.2% over the past year compared with its industry's 21.2% rally and the 9.1% growth of the Zacks S&P 500 composite.
Corpay, Inc. Price, Consensus and EPS Surprise
Corpay, Inc. price-consensus-eps-surprise-chart | Corpay, Inc. Quote
Corpay’s Segmental Results
Vehicle payments’ revenues of $487.1 million declined marginally from the year-ago quarter. This figure missed our estimate of $506.7 million. Despite a marginal decline, CPAY showed promising growth across Brazil, fueled by an increase in toll tags and electric vehicle offerings across the U.K. and Europe.
Revenues from corporate payments amounted to $352.7 million, increasing 33% year over year, beating our estimate of $335.7 million. The rise can be attributed to strong sales of corporate payment solutions, coupled with a surge in payables revenues and cross-border sales, driven by FX rate volatility from the changes in tariff policy.
Lodging payments posted revenues of $110.2 million, declining by a slight margin from the year-ago quarter. The reported figure missed our estimate of $115.8 million. Low airline revenues and volume softness resulted in the marginal decline of this segment’s revenues.
CPAY’s Margins
EBITDA increased 7.6% from the year-ago quarter to $519.3 million, surpassing our estimation of $508 million. The EBITDA margin was 55.2%, flat with the year-ago quarter.
Balance Sheet & Cash Flow of CPAY
Corpay exited the first quarter of 2025 with cash and cash equivalents of $1.6 billion, flat with the fourth quarter of 2024. The long-term debt was $5.9 billion compared with $5.2 billion in the preceding quarter.
CPAY generated $74.2 million in cash from operating activities in the quarter. Capital expenditure amounted to $44.8 million.
Corpay’s 2025 Outlook
For 2025, CPAY raised the revenue guidance to $4.38-$4.46 billion from the preceding quarter’s view of $4.35-$4.45 billion. The mid-point ($4.42 billion) of the guided range meets the Zacks Consensus Estimate for revenues.
The guidance for adjusted net income per diluted share was updated to $20.80-$21.20 from the previous quarter’s view of $20.75-$21.25. The mid-point ($21) of the guided range is slightly lower than the Zacks Consensus Estimate for earnings per share.
Currently, CPAY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2025 results.
FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.
Gartner, Inc. (IT - Free Report) posted first-quarter 2025 results wherein earnings surpassed the Zacks Consensus Estimate and revenues met the same.
IT’s adjusted earnings per share of $2.98 beat the Zacks Consensus Estimate by 9.6% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion met the consensus estimate and improved 4.2% year over year.