Why Is Corpay (CPAY) Down 12% Since Last Earnings Report?

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$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$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]