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].

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].