Corpay Earnings Outpace Estimates in Q1, Revenues Increase 7.5% Y/Y

Core Insights - Corpay, Inc. (CPAY) reported mixed first-quarter 2025 results with earnings surpassing estimates while revenues fell short [1] - Earnings per share reached $4.51, a 10% increase year over year, while total revenues were $1 billion, reflecting a 7.5% year-over-year growth but missing estimates slightly [1] Financial Performance - Vehicle payments revenues were $487.1 million, a slight decline from the previous year and missing estimates of $506.7 million, although growth was noted in Brazil due to increased toll tags and electric vehicle offerings in the U.K. and Europe [3] - Corporate payments revenues amounted to $352.7 million, a 33% year-over-year increase, exceeding estimates of $335.7 million, driven by strong sales and cross-border transactions influenced by FX rate volatility [4] - Lodging payments generated $110.2 million, a slight decline from the previous year, missing estimates of $115.8 million due to low airline revenues [5] - EBITDA increased by 7.6% year over year to $519.3 million, surpassing estimates of $508 million, with an EBITDA margin of 55.2%, consistent with the previous year [6] Balance Sheet & Cash Flow - At the end of Q1 2025, Corpay had cash and cash equivalents of $1.6 billion, unchanged from Q4 2024, while long-term debt rose to $5.9 billion from $5.2 billion [7] - The company generated $74.2 million in cash from operating activities, with capital expenditures totaling $44.8 million [7] 2025 Outlook - Corpay raised its revenue guidance for 2025 to a range of $4.38-$4.46 billion, aligning with the Zacks Consensus Estimate [8] - The adjusted net income per diluted share guidance was updated to $20.80-$21.20, slightly lower than the Zacks Consensus Estimate for earnings per share [8]