Corpay Earnings Surpass Estimates in Q4, Revenues Appreciate 10% Y/Y

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$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$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]