Core Insights - Corpay (CPAY) is expected to report quarterly earnings of $5.13 per share, reflecting a year-over-year increase of 12.8% [1] - Anticipated revenues for the quarter are projected to be $1.1 billion, which represents a 12.7% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised 1.2% higher over the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [3] Revenue Forecasts - Analysts predict 'Revenues- Corporate Payments' will reach $385.68 million, a year-over-year increase of 33.7% [5] - 'Revenues- Vehicle Payments' are expected to be $525.69 million, showing a 3% increase year-over-year [5] - 'Revenues- Lodging Payments' are forecasted at $122.91 million, indicating a slight increase of 0.4% from the previous year [5] - 'Revenues- Other Payments' are estimated to be $61.97 million, reflecting a 13.5% increase from the prior year [6] Transaction and Operating Income Estimates - 'Spend volume - Corporate Payments' is projected to reach 54.03 million, up from 42.88 million in the same quarter last year [7] - 'Operating income- Corporate Payments' is expected to be $144.83 million, compared to $120.56 million in the previous year [9] - 'Operating income- Vehicle Payments' is forecasted at $259.50 million, up from $242.03 million year-over-year [9] - 'Operating income- Lodging' is estimated to be $55.18 million, slightly down from $56.39 million in the same quarter last year [10] Market Performance - Corpay shares have decreased by 6.7% in the past month, contrasting with a 0.6% increase in the Zacks S&P 500 composite [10]

Core Insights - Corpay (CPAY) reported revenue of $1.01 billion for the quarter ended March 2025, reflecting a year-over-year increase of 7.5% [1] - Earnings per share (EPS) for the quarter was $4.51, up from $4.10 in the same quarter last year, with an EPS surprise of +0.45% compared to the consensus estimate of $4.49 [1] - The reported revenue matched the Zacks Consensus Estimate, resulting in a slight revenue surprise of -0.43% [1] Financial Performance Metrics - Corpay's shares have returned +13.8% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Key Revenue Metrics - Lodging Payments recorded 9.8 million room nights, exceeding the average estimate of 9.2 million [4] - Corporate Payments generated revenues of $352.66 million, surpassing the average estimate of $346.20 million, with a year-over-year increase of +32.9% [4] - Vehicle Payments revenues were $487.11 million, slightly below the average estimate of $492.03 million, representing a year-over-year decline of -1.4% [4] - Lodging Payments revenues were $110.22 million, also below the average estimate of $113.03 million, reflecting a -1% year-over-year change [4] - Other Payments revenues were $55.67 million, slightly above the average estimate of $55.59 million, but showed a significant year-over-year decline of -13.7% [4]

Corpay (CPAY) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Good day. I'd like to welcome everyone to the Corpay First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Today's call is being recorded. I would now like to turn the call over to Jim Egglestader, Investor Relations. Please go ahead. Speaker1 Good afternoon, and thank you for joining us today ...

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1.6 billion, an increase of 8%, and cash EPS of $4.51, up 10% [8][24] - Organic revenue growth for the quarter was 9%, with vehicle payments growing 8% and corporate payments growing 19% [9][25] - Retention rate remained steady at 92%, with new bookings up 35% year-over-year [10][24] Business Line Data and Key Metrics Changes - Corporate Payments revenue increased 19% organically, driven by solid spend volumes [25] - Cross border sales grew 51% year-over-year, with revenue increasing 18% organically [25] - Vehicle payments revenue grew 8% organically, with significant growth in Brazil [29] Market Data and Key Metrics Changes - The company expects tariff impacts to be modest, with an estimated unfavorable impact of $10 million to $15 million on cross border revenue [28] - U.S. Vehicle payments revenue growth was down 3% organically, but improvements in customer application approvals and retention were noted [30][72] Company Strategy and Development Direction - The company is focused on expanding its corporate payments business through recent acquisitions, including a partnership with Mastercard and a minority investment in Avid [15][16] - The company aims to enhance its position in the corporate payments space and is exploring additional acquisition targets [18][19] - A major push into the institutional client segment for cross border services is underway [21] Management's Comments on Operating Environment and Future Outlook - The management maintains a full-year 2025 guidance of $4.42 billion in revenue and $21 in cash EPS, reflecting confidence in the business despite macro uncertainties [12][40] - The company is not seeing any meaningful change in customer behavior due to economic uncertainties as of April [40] - Management expressed optimism about the performance of the hedging business, benefiting from market volatility [95] Other Important Information - The company completed the acquisition of Gringo in March, which had an immaterial impact on revenue and adjusted EPS [24] - Operating expenses increased by 8% year-over-year, influenced by recent acquisitions and higher transaction volumes [33] Q&A Session Summary Question: Confidence in Mastercard partnership for incremental revenue growth - Management expressed confidence that the partnership with Mastercard will create significant opportunities, especially with Tier two and Tier three banks [44][46] Question: Nature of the Avid investment - The investment in Avid is strategic, aimed at enhancing corporate payments and payables, with a focus on profit acceleration [48][49] Question: Update on enterprise sales pipeline - Management confirmed that the enterprise sales initiative is live and progressing well, with potential for significant growth [57][58] Question: Impact of tariffs on vehicle payments - Management indicated that while tariffs do not directly impact the company, clients with goods-based businesses may experience indirect effects [63][66] Question: Performance of U.S. Vehicle payments - Management reported improved retention rates and anticipated a pivot in organic revenue growth for the U.S. Vehicle payments business [71][72] Question: Access to Avid's supplier network - Management confirmed that a prior commercial agreement with Avid has already begun to enhance supplier monetization, and further synergies are expected [113][114] Question: Potential noncore divestitures - Management mentioned plans to divest three noncore businesses, which could provide up to $2 billion in liquidity [17][116]

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]