Latest news with #CorpayInc
Globe and Mail
19-05-2025
- Business
- Globe and Mail
Corpay Stock Jumps 25% in a Year: Here's What You Should Know
Corpay, Inc. CPAY has had a remarkable run over the past year. The company's shares have gained 25% in that period compared with its industry and the Zacks S&P 500 composite's growth of 25.6% and 13.6%, respectively. Corpay, Inc. Price CPAY's revenues are expected to rise 11.3% year over year in 2025 and 10.6% in 2026. Its earnings are estimated to increase 10.4% in 2025 and 16% in 2026. CPAY Raised 2025 Top-Line Outlook For 2025, Corpayraised the revenue guidance to $4.38-$4.46 billion from the preceding quarter's view of $4.35-$4.45 billion. This is a continuous improvement from the third quarter of 2024, wherein the company expected the top line to be $3.98-$4.01 billion. Such a gradual increment boosted investors' confidence. Corpay's Organic Revenue Growth Looks Promising In 2022, 2023 and 2024, CPAY's organic revenues increased 13%, 10% and 20%, respectively. Despite a marginal slowdown in 2023, the company's organic revenues skyrocketed in 2024, fueled by increased volume and revenues per transaction in its payment programs. Such results indicate the company's effective strategy to maintain healthy demand for its services. This leads to an increase in confidence among existing and potential investors, making the stock more appealing. CPAY's Multi-Channel Approach Aids Customer-Base Expansion Corpay leverages a multi-channel approach to market and sell solutions to current and prospective clients. This go-to-market strategy involves a comprehensive digital channel, direct sales forces and strategic partner relationships. The company expands online continuously, with end-to-end capabilities, wherein customers can buy, onboard and manage their accounts on their own. CPAY's salespeople have become more efficient by improving their efforts via digitally sourced leads utilizing this omnichannel approach. Corpay's Consistent Buyout Strategy CPAY acquires companies both in the United States and on a global scale to expand its customer base, workforce and operational capabilities. It also expands an array of services across various industries. In December 2024, the company acquired GPS Capital Markets, which expanded its corporate payments business. In September 2023, Corpay acquired PayByPhone, a global digital parking payment solutions provider, which expanded its vehicle payment solutions for B2B fleet customers in North America and Europe. Notable acquisitions include Global Reach Group, Mina Digital Limited and Business Gateway AG, which marked a significant expansion of Corpay's product portfolio and geographic presence. CPAY's Zacks Rank & Stocks to Consider Corpay carries a Zacks Rank #3 (Hold) at present. Investors interested in the Zacks Business Services sector may look at some better-ranked stocks like Amadeus IT Group AMADY and AppLovin APP, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Amadeus IT Group has a long-term earnings growth expectation of 7.7%. AMADY delivered a trailing four-quarter earnings surprise of 7.4%, on average. AppLovin has a long-term earnings growth expectation of 20%. APP delivered a trailing four-quarter earnings surprise of 22.9%, on average. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. AppLovin Corporation (APP): Free Stock Analysis Report Corpay, Inc. (CPAY): Free Stock Analysis Report
Yahoo
07-05-2025
- Business
- Yahoo
Corpay Inc (CPAY) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: Q1 2025 revenue of $1.6 billion, up 8% year-over-year. Cash EPS: $4.51, up 10% year-over-year; would be up 18% on constant macro basis. Organic Revenue Growth: 9% overall; Vehicle Payments 8%, Corporate Payments 19%. Same-Store Sales: Positive 1% growth. Retention Rate: Steady at 92%. Sales/New Bookings: Up 35% versus Q1 last year. Full Year 2025 Revenue Guidance: $4.420 billion at the midpoint. Full Year 2025 Cash EPS Guidance: $21 at the midpoint. Corporate Payments Revenue: Up 19% organically. Cross-Border Revenue: Increased 18% organically. Vehicle Payments Revenue: Grew 8% organically. Operating Expenses: $579 million, increased 8% year-over-year. Adjusted EBITDA Margin: 55.2%, consistent with prior year. Leverage Ratio: 2.69x, down 6 bps from year-end. Cash and Revolver Availability: Over $2.5 billion at the end of the quarter. Q2 2025 Revenue Growth Expectation: 12% to 14%. Q2 2025 Cash EPS Growth Expectation: 11% to 13%. Release Date: May 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Corpay Inc (NYSE:CPAY) reported Q1 2025 revenue of $1.6 billion, an 8% increase, with cash EPS up 10% to $4.51. Organic revenue growth was strong at 9%, with Vehicle Payments and Corporate Payments segments showing 8% and 19% growth, respectively. The company announced a strategic partnership with Mastercard, which is expected to add 2% to 3% incremental revenue growth to the cross-border business starting next year. Corpay Inc (NYSE:CPAY) is maintaining its full-year 2025 guidance with expected organic revenue growth of 11% and cash EPS of $21. The company is actively pursuing M&A opportunities, including a $500 million investment in Avid, which is expected to be accretive to earnings in 2026. Negative Points The company faced a $6 million unfavorable fuel spread revenue shortfall in Q1 due to low price volatility. Cross-border revenue was impacted by U.S. tariff policies, with an expected unfavorable impact of $10 million to $15 million for the remainder of 2025. U.S. Vehicle Payments revenue declined by 3% organically, although improvements in retention and sales are anticipated. Lodging organic revenue growth was down 1% for the quarter, although it showed improvement from the previous year's decline. The macroeconomic environment remains uncertain, with potential indirect impacts from tariffs on client volumes and overall business performance. Q & A Highlights Q: Can you provide more details on the partnership with Mastercard and the expected revenue growth? A: Ronald Clarke, CEO, explained that the partnership with Mastercard is expected to add 2-3% incremental revenue growth to Corpay's cross-border business. He emphasized the significant opportunity due to the large volume of cross-border payments currently handled by banks, and expressed confidence that Mastercard's involvement will drive growth.
