Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's future prospects, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with the best value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model based on earnings estimate revisions, facilitating portfolio building [7] - Stocks rated 1 (Strong Buy) have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks (3, 4, 5) should be approached cautiously, even if they have high Style Scores, due to potential downward earnings outlooks [10] Company Spotlight: Corpay, Inc. - Corpay, Inc. is a global commercial payments solution provider, helping businesses automate and control payments across various regions [11] - Corpay holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for growth [11] - The company is forecasted to achieve year-over-year earnings growth of 11.1% for the current fiscal year, with a recent earnings estimate increase [12]

Investors interested in Financial Transaction Services stocks are likely familiar with Corpay (CPAY) and MasterCard (MA) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimat ...

Core Viewpoint - Corpay (CPAY) is a strong candidate for investors seeking stocks that consistently beat earnings estimates, particularly in the Zacks Financial Transaction Services industry [1]. Group 1: Earnings Performance - Corpay has a solid track record of exceeding earnings estimates, with an average surprise of 0.48% over the last two quarters [2]. - In the last reported quarter, Corpay achieved earnings of $5.36 per share, surpassing the Zacks Consensus Estimate of $5.33 per share, resulting in a surprise of 0.56% [3]. - For the previous quarter, the company was expected to earn $4.98 per share but delivered $5.00 per share, yielding a surprise of 0.40% [3]. Group 2: Earnings Estimates and Predictions - Estimates for Corpay have been trending upward, influenced by its history of earnings surprises [6]. - The stock has a positive Zacks Earnings ESP (Expected Surprise Prediction) of +2.16%, indicating recent bullish sentiment among analysts regarding the company's earnings prospects [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [7][9]. Group 3: Earnings Release Information - Corpay's next earnings report is anticipated to be released on May 6, 2025 [9].

Shares of Corpay, Inc. (NYSE: CPAY ) (previously known as Fleetcor Technologies) have delivered a total return of 3% since my initial Strong Buy recommendation, Fleetcor Technologies: 5 Reasons Why I Am Bullish , was published on January Analyst's Disclosure: I/we have a beneficial long position in the shares of CPAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alp ...

Group 1 - USAA Perks® and CarAdvise launched the CarAdvise Fuel program to help USAA members save on fuel at over 60,000 locations in the U.S. [1] - The program offers a discount of 5 cents per gallon for fuel purchases at participating gas stations within the network [1][4] - The initiative is part of USAA's commitment to provide valuable benefits to its members, particularly active-duty military members and their families [2][4] Group 2 - CarAdvise has been providing its core car maintenance savings program to USAA members since 2020, enhancing their vehicle upkeep experience [4] - Corpay, the technology partner behind the program, aims to deliver a seamless fueling experience to millions of USAA members [4][5] - USAA serves nearly 14 million members, including military personnel and their families, and has a strong commitment to supporting these communities [5]

Core Insights - Corpay's recent earnings report showed mixed results, with earnings per share of $5.36 beating estimates by a slight margin, while total revenues of $1 billion missed expectations by 1.5% [2] - The company's shares have declined approximately 12% since the last earnings report, underperforming the S&P 500 [1] Financial Performance - Earnings per share increased by 20.7% year over year, while total revenues grew by 10.4% compared to the same quarter last year [2] - Corporate payments revenue reached $346.2 million, a 38% year-over-year increase, exceeding estimates [3] - Vehicle payments revenue was $497.7 million, showing a slight decline from the previous year and missing estimates [4] - Lodging payments revenue increased by 1% year over year to $120.9 million, surpassing expectations [4] - EBITDA rose by 12.4% year over year to $571.2 million, but fell short of projections [5] Balance Sheet and Cash Flow - Corpay ended Q4 2024 with cash and cash equivalents of $1.6 billion, up from $1.3 billion in Q3 2024, while long-term debt decreased slightly [6] - The company generated $648.7 million in cash from operating activities during the quarter [6] Future Outlook - For 2025, Corpay raised its revenue guidance to $4.35-$4.45 billion, up from the previous estimate of $3.98-$4.01 billion [7] - Adjusted net income per diluted share guidance was also increased to $20.75-$21.25 from $18.90-$19.10 [7] - Recent estimates have trended downward, with a consensus estimate shift of -6.05% [8] Investment Scores - Corpay holds a Growth Score of A and a Momentum Score of A, with a Value Score of B, placing it in the top 40% for this investment strategy [9]

International Revenues and Currency Impact - International revenues accounted for 47.7% of total revenues in 2024, up from 45.6% in 2023[403]. - A hypothetical 10% change in foreign currency exchange rates could have impacted consolidated operating income by approximately $97.8 million in 2024, compared to $86.0 million in 2023[403]. Debt and Interest Rates - The company had $6.7 billion of variable rate debt outstanding as of December 31, 2024, an increase from $5.4 billion in 2023[405]. - A 100 basis point change in market interest rates would have changed interest expense by approximately $22 million in 2024 and $14 million in 2023[406]. - Total debt increased to $7.996 billion in 2024 from $6.723 billion in 2023, representing an 18.9% increase[579]. - Term Loan A interest rate decreased to 5.83% in 2024 from 6.83% in 2023, while Term Loan B interest rate decreased to 6.11% from 7.21%[582]. - The Company entered into a fifteenth amendment to the Credit Agreement, increasing Term Loan B commitments by $500 million[580]. Goodwill and Acquisitions - The company recognized a goodwill impairment loss of $90 million related to the Payroll Card reporting unit in 2024, with total goodwill at $6.0 billion[421]. - The acquisitions of Paymerang and GPS Capital Markets, LLC were completed for total estimated purchase consideration of $179.2 million and $576.2 million, respectively[424]. - Intangible assets from these acquisitions, including customer and vendor relationships, were recorded at $542.3 million[424]. - The Company acquired 70% of Zapay for approximately $59.5 million in March 2024, with goodwill of approximately $73.2 million recorded[553]. - The acquisition of Paymerang in July 2024 was for approximately $179.2 million, with goodwill of approximately $308.1 million recorded[554]. - The Company acquired GPS Capital Markets for approximately $576.2 million in December 2024, with goodwill of approximately $329.2 million recorded[555]. - The total consideration paid for the 2024 acquisitions was approximately $814.9 million, net of cash and cash equivalents of $509.0 million[556]. - Goodwill increased to $5.98 billion by December 31, 2024, reflecting acquisitions and adjustments, with $383.9 million attributed to the 2023 acquisitions[565][567]. Financial Performance - Net revenues for 2024 reached $3,974,589, representing a 5.79% increase from $3,757,719 in 2023[432]. - Operating income rose to $1,787,157, a 7.87% increase compared to $1,656,873 in 2023[432]. - Net income attributable to Corpay was $1,003,746, up 2.00% from $981,890 in 2023[432]. - Basic earnings per share increased to $14.27, reflecting a 6.34% rise from $13.42 in 2023[432]. - Comprehensive income attributable to Corpay was $578,849, down 52.06% from $1,202,441 in 2023[436]. - Net income for the year ended December 31, 2024, was $1,003,732, an increase of 2.9% from $981,890 in 2023[442]. Cash Flow and Investments - Net cash provided by operating activities decreased to $1,940,565 in 2024 from $2,101,132 in 2023, a decline of 7.7%[442]. - The company made acquisitions net of cash acquired totaling $821,924 in 2024, compared to $428,327 in 2023, indicating a significant increase of 92.0%[442]. - The Company reported a net cash used in investing activities of $807,477 in 2024, compared to $380,723 in 2023, an increase of 112.0%[442]. - Cash and cash equivalents at the end of 2024 were $4,456,345, up from $3,141,535 at the end of 2023, representing a growth of 42.0%[442]. Assets and Liabilities - Total assets increased to $17,957,031, up 16.06% from $15,476,252 in 2023[429]. - Total current liabilities increased to $8,707,881, a 27.56% rise from $6,825,753 in 2023[430]. - Goodwill increased to $5,984,667, up 6.02% from $5,644,958 in 2023[429]. - Total stockholders' equity decreased to $3,145,989, down 4.16% from $3,282,359 in 2023[430]. - The Company had deferred customer incentives of $5.5 million as of December 31, 2024, down from $10.0 million in 2023[525]. Taxation - The total provision for income taxes for 2024 was $381,381 thousand, representing an increase from $343,115 thousand in 2023 and $321,333 thousand in 2022[592]. - The computed "expected" tax expense for 2024 was $290,877 thousand, which is 21.0% of income before income taxes, consistent with the previous two years[592]. - The valuation allowance decreased by $52.8 million in 2024, primarily due to the release of a deferred tax asset related to foreign tax credits[595]. - The foreign income tax differential contributed $31,743 thousand (2.3%) to the provision for income taxes in 2024[592]. Stock and Compensation - Stock-based compensation expense for 2024 was $116.7 million, with tax benefits related to stock-based compensation of $60.7 million[545]. - The Company has a stock repurchase program authorized to repurchase up to $9.1 billion in common stock until February 4, 2026[540]. - The Company repurchased 33,090,680 shares for an aggregate purchase price of $7.8 billion since the beginning of the stock repurchase program, with $1.3 billion remaining for future repurchases[540].

Core Insights - Corpay (CPAY) reported mixed fourth-quarter 2024 results, with earnings exceeding estimates while revenues fell short [1][2] Financial Performance - Earnings per share were $5.36, beating the consensus estimate by a slight margin and reflecting a year-over-year increase of 20.7% [2] - Total revenues reached $1 billion, missing the consensus estimate by 1.5% but showing a growth of 10.4% from the previous year [2] - EBITDA increased by 12.4% year-over-year to $571.2 million, although it missed projections of $599 million [5] - The EBITDA margin was 55.2%, up 100 basis points from the fourth quarter of 2023 but below the estimate of 56.9% [5] Segment Performance - Corporate payments generated revenues of $346.2 million, a 38% increase year-over-year, surpassing estimates [3] - Vehicle payments revenues were $497.7 million, slightly declining from the previous year and missing estimates of $549.9 million [4] - Lodging payments revenues were $120.9 million, a 1% increase from the year-ago quarter, beating expectations [4] Balance Sheet & Cash Flow - Corpay ended the fourth quarter with cash and cash equivalents of $1.6 billion, up from $1.3 billion in the previous quarter [6] - Long-term debt decreased to $5.2 billion from $5.3 billion [6] - Cash generated from operating activities was $648.7 million, with capital expenditures of $44.1 million [6] 2025 Outlook - For 2025, revenue guidance was raised to $4.35-$4.45 billion from the previous estimate of $3.98-$4.01 billion, aligning with the Zacks Consensus Estimate [7] - Adjusted net income per diluted share guidance was increased to $20.75-$21.25 from $18.90-$19.10, though it remains below the Zacks Consensus Estimate of $21.86 [7]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $1,034 million, an increase of 10%, and cash EPS of $5.36, up 21% [9][31] - For the full year 2024, cash EPS was $19, up 16% excluding Russia, with overall sales growth exceeding 20% [13][32] - Organic revenue growth for Q4 was 12%, with corporate payments line achieving 26% organic revenue growth [10][35] Business Line Data and Key Metrics Changes - Corporate Payments revenue increased by 26% in Q4 and 20% for the full year [35] - Vehicle Payments organic revenue grew 8% in Q4 and 5% for the year, with significant growth in insurance revenue, which was up over 130% in Q4 [40][41] - Cross-Border revenue rose 20% for both the quarter and the year, driven by strong sales growth [38] Market Data and Key Metrics Changes - Same-store sales improved to a positive 1% in Q4 compared to a negative 3% in the previous year [11] - The company faced macroeconomic headwinds, with print revenue impacted by approximately $20 million due to unfavorable FX rates [30][17] Company Strategy and Development Direction - The company plans to focus on expanding its Corporate Payments business and simplifying its portfolio by shedding non-core assets [18][19] - Major initiatives include taking the Payables business upmarket to the Enterprise segment and expanding into Europe [20][21] - The Multi-Currency Account product is expected to enhance competitiveness in the Cross-Border market [22] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about a challenging macro environment, projecting print revenue to be compressed by over $100 million in 2025 [17][60] - Despite macro challenges, the company maintains confidence in its core business performance and expects organic revenue growth of 11% in 2025 [15][61] Other Important Information - The company completed two acquisitions in 2024, Paymerang and GPS, and is on track to deliver $0.50 of cash EPS accretion from these deals [23] - The acquisition of Gringo is expected to significantly increase the company's presence in the Brazilian payments market [24] Q&A Session Summary Question: What is driving the expected acceleration in Vehicle Payments? - Management indicated that strong performance in Brazil and improvements in the U.S. Vehicle Payments market are key drivers [69] Question: Is Gringo included in the 2025 guidance? - Management confirmed that Gringo is not included in the guidance as the acquisition has not yet closed [76] Question: What are the expectations for Corporate Payments and potential divestitures? - Management stated that pruning would involve small non-core assets, with a focus on enhancing the Corporate Payments segment [81] Question: How is the company benefiting from recent sales changes and rebranding? - Management noted that while it is still early days, the sales momentum is primarily driven by existing business rather than recent changes [88] Question: What is the current penetration of card usage in the full AP business? - The average penetration of card usage in the full AP business is around 10% to 11% [106] Question: What are the expectations for the Lodging business growth? - Management expects the Lodging business to recover and return to historical growth rates as same-store sales improve [144]

Core Insights - Corpay (CPAY) reported $1.03 billion in revenue for the quarter ended December 2024, marking a year-over-year increase of 10.4% and an EPS of $5.36 compared to $4.44 a year ago, with a revenue surprise of -1.50% and an EPS surprise of +0.56% [1] Financial Performance Metrics - Corpay's shares have returned +9.2% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change, and currently holds a Zacks Rank 3 (Hold) [3] - Lodging Payments recorded 10.6 million room nights, exceeding the estimated 8.9 million [4] - Corporate Payments spend volume reached $47.94 million, surpassing the average estimate of $44.01 million [4] - Revenues per room night in Lodging Payments were $11.39, lower than the estimated $13.32 [4] - Vehicle Payments generated revenues of $497.66 million, below the average estimate of $523.21 million [4] - Corporate Payments revenues were $346.19 million, exceeding the average estimate of $337.94 million, representing a year-over-year change of +37.9% [4] - Revenues from Other Payments were $69.69 million, compared to the average estimate of $74.05 million, reflecting a year-over-year change of +4.8% [4] - Lodging Payments revenues were $120.89 million, slightly above the estimated $119.31 million, with a year-over-year change of +0.8% [4] - Operating income for Corporate Payments was $136.26 million, below the average estimate of $146.38 million [4]