Corpay (CPAY) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Corpay (CPAY) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with earnings expected to be $5.35 per share, reflecting a 20.5% increase, and revenues projected at $1.05 billion, a 12.3% rise from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for February 5, and the stock may rise if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 0.91% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Corpay is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.16%, which complicates the prediction of an earnings beat [10][11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, but Corpay currently holds a Zacks Rank of 3 [8][11]. Historical Performance - In the last reported quarter, Corpay was expected to post earnings of $4.98 per share but delivered $5, resulting in a surprise of +0.40%. Over the last four quarters, the company has beaten consensus EPS estimates three times [12][13]. Conclusion - While Corpay does not appear to be a compelling earnings-beat candidate based on current estimates, investors should consider other factors before making investment decisions ahead of the earnings release [16].