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CPAY’s earnings per share of $5 beat the consensus estimate by a slight margin and increased 11.4% on a year-over-year basis. The total revenues of $1 billion outpaced the consensus estimate marginally and grew 6% from the year-ago quarter.
The stock has gained 21% over the past three months compared with the 18.2% rise of the industry it belongs to and 12% growth of the Zacks S&P 500 composite.
Three Months Price Performance
Image Source: Zacks Investment Research
Corpay’s Segmental Results
Revenues from Corporate payments amounted to $321.9 million, increasing 25% year over year, surpassing our estimate of $296.2 million. A rise in the spend volume, stable card penetration rates and strength across direct businesses drove this segment’s revenues.
Vehicle payments’ revenues of $506.8 billion rose 1% from the year-ago quarter. This figure missed our estimate of $520 million. Increased transactions and higher revenues per transaction, which were broad-based across all businesses and geographies, fueled this segment’s growth.
Lodging payments posted revenues of $134 million, declining 5% from the year-ago quarter. The reported figure lagged our expectation of $139.1 million.
CPAY’s Margins
EBITDA increased 5.4% from the year-ago quarter to $557.7 million, missing our projection of $544.2 million. The EBITDA margin was 54.2%, which moved down 30 basis points from the third quarter of 2023 but beat our estimate of 53.1%.
Balance Sheet & Cash Flow of CPAY
Corpay exited the third quarter of 2024 with cash and cash equivalents of $1.3 billion compared with $1.4 billion in the second quarter of 2024. The long-term debt was $5.3 billion compared with $4.8 billion in the preceding quarter.
CPAY generated $400.8 million in cash from operating activities in the quarter. Capital expenditure amounted to $45.8 million.
Corpay’s Q4 & 2024 Outlook
For the fourth quarter of 2024, CPAY expects revenues of $1.04-$1.07 billion. The Zacks Consensus Estimate for revenues is pegged at $1.03 billion, which is lower than the company’s guided range. The guidance for adjusted net income per diluted share is $5.25-$5.45. The consensus estimate for earnings is pegged at $4.98 per share, lower than the company’s guided range.
For fiscal 2024, CPAY updated the revenue guidance to $3.98-$4.01 billion from the $3.97-$4.02 billion given in the preceding quarter. The mid-point ($3.99 billion) of the guided range meets the Zacks Consensus Estimate. The guidance for adjusted net income per diluted share was updated to $18.90-$19.10 from the $18.85-$19.15 stated in the previous quarter. The mid-point ($19 per share) of the guided range is higher than the Zacks Consensus Estimate for earnings of $18.98.
CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.
NSP’s adjusted earnings (excluding 32 cents from non-recurring items) of 39 cents per share outpaced the consensus estimate by 21.9% but decreased 73.3% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate marginally but increased from the year-ago quarter.
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Corpay Earnings & Revenues Surpass Estimates in Q3, Rise Y/Y
Corpay (CPAY - Free Report) reported impressive third-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
See Zacks Earnings Calendar to stay ahead of market-making news.
CPAY’s earnings per share of $5 beat the consensus estimate by a slight margin and increased 11.4% on a year-over-year basis. The total revenues of $1 billion outpaced the consensus estimate marginally and grew 6% from the year-ago quarter.
The stock has gained 21% over the past three months compared with the 18.2% rise of the industry it belongs to and 12% growth of the Zacks S&P 500 composite.
Three Months Price Performance
Corpay’s Segmental Results
Revenues from Corporate payments amounted to $321.9 million, increasing 25% year over year, surpassing our estimate of $296.2 million. A rise in the spend volume, stable card penetration rates and strength across direct businesses drove this segment’s revenues.
Vehicle payments’ revenues of $506.8 billion rose 1% from the year-ago quarter. This figure missed our estimate of $520 million. Increased transactions and higher revenues per transaction, which were broad-based across all businesses and geographies, fueled this segment’s growth.
Lodging payments posted revenues of $134 million, declining 5% from the year-ago quarter. The reported figure lagged our expectation of $139.1 million.
CPAY’s Margins
EBITDA increased 5.4% from the year-ago quarter to $557.7 million, missing our projection of $544.2 million. The EBITDA margin was 54.2%, which moved down 30 basis points from the third quarter of 2023 but beat our estimate of 53.1%.
Balance Sheet & Cash Flow of CPAY
Corpay exited the third quarter of 2024 with cash and cash equivalents of $1.3 billion compared with $1.4 billion in the second quarter of 2024. The long-term debt was $5.3 billion compared with $4.8 billion in the preceding quarter.
CPAY generated $400.8 million in cash from operating activities in the quarter. Capital expenditure amounted to $45.8 million.
Corpay’s Q4 & 2024 Outlook
For the fourth quarter of 2024, CPAY expects revenues of $1.04-$1.07 billion. The Zacks Consensus Estimate for revenues is pegged at $1.03 billion, which is lower than the company’s guided range. The guidance for adjusted net income per diluted share is $5.25-$5.45. The consensus estimate for earnings is pegged at $4.98 per share, lower than the company’s guided range.
For fiscal 2024, CPAY updated the revenue guidance to $3.98-$4.01 billion from the $3.97-$4.02 billion given in the preceding quarter. The mid-point ($3.99 billion) of the guided range meets the Zacks Consensus Estimate. The guidance for adjusted net income per diluted share was updated to $18.90-$19.10 from the $18.85-$19.15 stated in the previous quarter. The mid-point ($19 per share) of the guided range is higher than the Zacks Consensus Estimate for earnings of $18.98.
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 of CPAY’s Peers
Clean Harbors, Inc. (CLH - Free Report) reported mixed third-quarter 2024 results.
CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.
Insperity, Inc. (NSP - Free Report) reported mixed third-quarter 2024 results.
NSP’s adjusted earnings (excluding 32 cents from non-recurring items) of 39 cents per share outpaced the consensus estimate by 21.9% but decreased 73.3% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate marginally but increased from the year-ago quarter.