Financial Performance - Corpay reported first quarter 2025 revenues of $1,005.7 million, an increase of 8% compared to $935.3 million in the first quarter of 2024[5]. - Net income attributable to Corpay rose 6% to $243.2 million in the first quarter of 2025, up from $229.8 million in the same period last year[5]. - Organic revenue growth for the first quarter of 2025 was 9%, with the Corporate Payments segment growing by 19%[2]. - Adjusted EBITDA increased 8% to $555.4 million in the first quarter of 2025, compared to $516.5 million in the first quarter of 2024[5]. - Basic earnings per share increased by 8% to $3.46 in Q1 2025, up from $3.20 in Q1 2024[20]. - Adjusted net income attributable to Corpay for Q1 2025 was $322,926, up from $301,320 in Q1 2024, indicating a growth of 7%[26]. - The company reported an operating income of $427.1 million, up 7% from $397.3 million in Q1 2024[32]. - Adjusted EBITDA for Q1 2025 was $555.4 million, reflecting a margin of 55.2%, consistent with the previous year[35]. Revenue Guidance - For fiscal year 2025, Corpay expects total revenues between $4,380 million and $4,460 million[6]. - Net income guidance for fiscal year 2025 is projected to be between $1,167 million and $1,207 million[6]. - Adjusted net income per diluted share is expected to be between $20.80 and $21.20 for fiscal year 2025[6]. - Q2 2025 net income guidance is set between $272 million and $282 million[38]. - Q2 2025 adjusted net income is anticipated to be between $359 million and $369 million[38]. - Q2 2025 adjusted net income per diluted share is projected to range from $5.05 to $5.15[38]. - Adjusted net income for 2025 is expected to be between $1,485 million and $1,525 million[38]. Asset and Liability Changes - Total current assets rose to $9,077,561 as of March 31, 2025, compared to $8,675,869 at the end of 2024, marking a 5% increase[22]. - Total assets increased to $18,547,780 as of March 31, 2025, up from $17,957,031 at the end of 2024, representing a growth of 3%[22]. - Total liabilities increased to $15,053,698 as of March 31, 2025, compared to $14,811,042 at the end of 2024, reflecting a rise of 2%[22]. - Cash and cash equivalents and restricted cash at the end of Q1 2025 totaled $4,383,423, compared to $3,202,676 at the end of Q1 2024[24]. - The company reported a net cash used in operating activities of $(74,151) for Q1 2025, a significant decrease from $350,184 in Q1 2024[24]. Segment Performance - Vehicle Payments segment generated revenues of $487.1 million, down 1% from $494.1 million in the same period last year[32]. - Corporate Payments segment saw a significant revenue increase of 33%, reaching $352.7 million compared to $265.4 million in Q1 2024[32]. - Lodging Payments segment reported revenues of $110.2 million, a slight decrease of 1% from $111.3 million in Q1 2024[32]. - Revenues from Other segment decreased by 14% to $55.7 million, down from $64.5 million in Q1 2024[32]. - The average monthly tag subscriptions for Q1 2025 were 7.6 million, with total tag transactions reaching 22.9 million, an 8% increase year-over-year[32]. - The US market contributed $507 million, accounting for 50% of total revenues, while Brazil and the UK contributed $163 million (16%) and $146 million (15%) respectively[30]. Investment and Acquisitions - The company plans to invest $500 million to acquire AvidXchange, alongside TPG[2]. - The company maintains its original 2025 outlook while incorporating the recent Gringo acquisition[4]. Operating Expenses - Total operating expenses for Q1 2025 were $578,543, an increase of 8% from $537,913 in Q1 2024[20]. - Capital expenditures increased by 9% to $44.8 million, compared to $41.2 million in Q1 2024[32]. Pre-Tax Adjustments - Total pre-tax adjustments for 2025 are estimated at $428 million[38]. - Total pre-tax adjustments for Q2 2025 are expected to be $118 million[38]. Stock-Based Compensation - Stock-based compensation for both 2025 and Q2 2025 is maintained at $108 million and $33 million respectively[38]. Share Information - Diluted shares for both 2025 and Q2 2025 are consistent at 72 million[38].

Corpay (CPAY) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Good day. I'd like to welcome everyone to the Corpay First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Today's call is being recorded. I would now like to turn the call over to Jim Egglestader, Investor Relations. Please go ahead. Speaker1 Good afternoon, and thank you for joining us today ...

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1.6 billion, an increase of 8%, and cash EPS of $4.51, up 10% [8][24] - Organic revenue growth for the quarter was 9%, with vehicle payments growing 8% and corporate payments growing 19% [9][25] - Retention rate remained steady at 92%, with new bookings up 35% year-over-year [10][24] Business Line Data and Key Metrics Changes - Corporate Payments revenue increased 19% organically, driven by solid spend volumes [25] - Cross border sales grew 51% year-over-year, with revenue increasing 18% organically [25] - Vehicle payments revenue grew 8% organically, with significant growth in Brazil [29] Market Data and Key Metrics Changes - The company expects tariff impacts to be modest, with an estimated unfavorable impact of $10 million to $15 million on cross border revenue [28] - U.S. Vehicle payments revenue growth was down 3% organically, but improvements in customer application approvals and retention were noted [30][72] Company Strategy and Development Direction - The company is focused on expanding its corporate payments business through recent acquisitions, including a partnership with Mastercard and a minority investment in Avid [15][16] - The company aims to enhance its position in the corporate payments space and is exploring additional acquisition targets [18][19] - A major push into the institutional client segment for cross border services is underway [21] Management's Comments on Operating Environment and Future Outlook - The management maintains a full-year 2025 guidance of $4.42 billion in revenue and $21 in cash EPS, reflecting confidence in the business despite macro uncertainties [12][40] - The company is not seeing any meaningful change in customer behavior due to economic uncertainties as of April [40] - Management expressed optimism about the performance of the hedging business, benefiting from market volatility [95] Other Important Information - The company completed the acquisition of Gringo in March, which had an immaterial impact on revenue and adjusted EPS [24] - Operating expenses increased by 8% year-over-year, influenced by recent acquisitions and higher transaction volumes [33] Q&A Session Summary Question: Confidence in Mastercard partnership for incremental revenue growth - Management expressed confidence that the partnership with Mastercard will create significant opportunities, especially with Tier two and Tier three banks [44][46] Question: Nature of the Avid investment - The investment in Avid is strategic, aimed at enhancing corporate payments and payables, with a focus on profit acceleration [48][49] Question: Update on enterprise sales pipeline - Management confirmed that the enterprise sales initiative is live and progressing well, with potential for significant growth [57][58] Question: Impact of tariffs on vehicle payments - Management indicated that while tariffs do not directly impact the company, clients with goods-based businesses may experience indirect effects [63][66] Question: Performance of U.S. Vehicle payments - Management reported improved retention rates and anticipated a pivot in organic revenue growth for the U.S. Vehicle payments business [71][72] Question: Access to Avid's supplier network - Management confirmed that a prior commercial agreement with Avid has already begun to enhance supplier monetization, and further synergies are expected [113][114] Question: Potential noncore divestitures - Management mentioned plans to divest three noncore businesses, which could provide up to $2 billion in liquidity [17][116]

Core Viewpoint - AvidXchange Holdings, Inc. is set to be acquired by TPG and Corpay for $10.00 per share, valuing the company at $2.2 billion, which represents a significant premium over its recent stock prices [1][2]. Acquisition Details - The acquisition price of $10.00 per share reflects a 22% premium over AvidXchange's closing price of $8.20 on May 6, 2025, a 16% premium over the 90-day volume weighted average price, and a 45% premium over the closing price of $6.89 on March 12, 2025 [2]. - Upon completion, AvidXchange will transition to a private company, allowing for greater flexibility in investing in growth and enhancing integrated payment solutions [2]. Company Background - AvidXchange is a leading provider of accounts payable automation software and payment solutions, serving over 8,500 middle market businesses and facilitating payments to more than 1,350,000 suppliers in the past five years [9]. - The company has established itself as a leader in AP automation and payment software, with a differentiated platform aimed at growth [3]. Strategic Insights - TPG and Corpay view AvidXchange as a leader in AP automation, with significant opportunities to enhance its solutions and improve efficiency in payment processes [3]. - The partnership aims to leverage TPG's technology expertise and Corpay's corporate payments capabilities to accelerate AvidXchange's growth [3]. Transaction Approval and Timeline - The transaction has been unanimously approved by AvidXchange's Board of Directors, and certain senior management members will rollover a significant portion of their equity [4]. - The deal is subject to customary closing conditions, including stockholder approval and regulatory approvals, and is expected to close in the fourth quarter of 2025 [5]. Financial Advisory - Financial Technology Partners and Barclays are acting as financial advisors to AvidXchange, while TPG is advised by J.P. Morgan Securities LLC, Moelis & Company, and RBC Capital Markets [7][8].

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on price trends and earnings outlook changes [5] - VGM Score combines the strengths of all three Style Scores to identify the most attractive investment opportunities [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal performance [9][10] Company Spotlight: Corpay, Inc. - Corpay, Inc. is a global provider of commercial payment solutions, serving various regions including North America, Latin America, Europe, and Asia Pacific [11] - Currently rated 3 (Hold) by Zacks, Corpay has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 13.8% over the past month [11][12] - Recent upward revisions in earnings estimates for fiscal 2025 indicate positive momentum, with the Zacks Consensus Estimate rising by $0.04 to $21.11 per share [12]

Core Insights - Corpay, Inc. (CPAY) is set to release its first-quarter 2025 results on May 6, with expectations of surpassing the Zacks Consensus Estimate for the fifth consecutive quarter, having achieved an average earnings surprise of 0.6% in the past four quarters [1][2] Revenue Expectations - The Zacks Consensus Estimate for Corpay's revenues is $1 billion, indicating an 8% growth compared to the same quarter last year, driven by improved performances across three segments [2] - Vehicle payments are projected to generate revenues of $506.7 million, reflecting a 2.6% increase year-over-year, supported by toll tax hikes in Brazil and enhanced digital sales efforts in the U.S. [3] - Corporate payments are estimated at $335.7 million, suggesting a significant 26.5% year-over-year growth, attributed to solid spending volumes and rising cross-border revenues [4] - Lodging revenues are expected to reach $115.8 million, indicating a 4.1% growth from the previous year, bolstered by improved same-store sales in Corpay's workforce business [4] Earnings Projections - The consensus estimate for earnings per share is $4.49, which represents a 9.5% increase year-over-year, driven by robust revenue growth and effective expense management [5] - Current analysis indicates that Corpay may not achieve an earnings beat this quarter, with an Earnings ESP of -0.22% and a Zacks Rank of 3 (Hold) [6]

Core Insights - Corpay (CPAY) is expected to report quarterly earnings of $4.49 per share, reflecting a year-over-year increase of 9.5% [1] - Projected revenues for the quarter are $1.01 billion, which represents an 8% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.5% higher in the last 30 days, indicating a collective reevaluation by analysts [1][2] Revenue Estimates - Analysts forecast 'Revenues- Corporate Payments' to be $346.20 million, showing a year-over-year increase of 30.5% [4] - 'Revenues- Vehicle Payments' are expected to be $492.03 million, indicating a slight decrease of 0.4% from the prior year [4] - 'Revenues- Lodging Payments' are projected to reach $113.03 million, reflecting a year-over-year change of 1.6% [4] Other Payment Metrics - 'Revenues- Other Payments' are estimated at $55.59 million, which indicates a decline of 13.8% from the previous year [5] - 'Lodging Payments - Room nights' are expected to total 9.20 million, an increase from 8.2 million reported in the same quarter last year [5] Spend Volume and Net Revenue - The consensus estimate for 'Spend volume - Corporate Payments' is 46.98 million, up from 36.8 million in the same quarter last year [6] - 'Revenues, net per room night - Lodging Payments' is projected to be $12.34, down from $13.52 reported in the same quarter of the previous year [6] Transaction Estimates - 'Other - Transactions' are forecasted to reach 343.83 million, a decrease from 367.3 million reported in the same quarter last year [7] - Corpay shares have decreased by 9.3% in the past month, contrasting with the Zacks S&P 500 composite's decline of 0.7% [7]

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].