Corpay CPAY 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 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 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.
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