ATLANTA - Corpay, Inc. (NYSE: CPAY), a leader in corporate payments, announced its preliminary financial results for the third quarter ending September 30, 2024. The company expects to report revenue of approximately $1.029 billion, maintaining stable same-store sales from the previous quarter. Earnings per diluted share are anticipated to be $3.90, with an adjusted figure of $5.00.
Chairman and CEO Ron Clarke expressed satisfaction with the third quarter results, which met the higher end of their guidance ranges. Corpay is reiterating its full-year adjusted earnings per share guidance of $19.00, based on the mid-point provided on August 7, 2024. The company also anticipates low double-digit organic revenue growth for the fourth quarter and a Cash EPS exit run-rate exceeding $21.00.
Corpay has scheduled its regular earnings call for November 7, 2024. Additionally, the company filed a Form 8-K today regarding changes to the CEO's 2021 performance option grant.
The reported financial figures are preliminary and unaudited, subject to finalization and potential adjustments during the quarter-end financial and accounting review. These results could materially differ from the current estimates.
The press release also contained forward-looking statements based on preliminary information, management assumptions, and expectations about future performance. These statements are subject to uncertainties and changes in market conditions, economic factors, and other variables.
The financial results include non-GAAP measures, which Corpay uses to evaluate its operating performance. Adjusted net income and adjusted earnings per diluted share exclude non-cash stock-based compensation, amortization, integration, and deal-related costs, and other non-recurring items. These measures are meant to provide a clearer picture of the company's core operating performance.
Corpay is an S&P 500 company that offers payment solutions for businesses and consumers, focusing on vehicle-related, travel, and accounts payable expenses. The information reported is based on a press release statement.
In other recent news, Corpay has been making notable strides in its financial performance and strategic positioning. The company exceeded Q2 earnings and revenue estimates, with an adjusted earnings per share of $4.55 and revenue of $975.7 million. Despite this strong performance, Corpay's Q3 guidance fell short of analysts' expectations, projecting an adjusted EPS of $4.90-$5.00 and revenue between $1.015-1.035 billion.
CFRA raised its price target on Corpay to $385 from the previous $325, maintaining a Buy rating on the stock. This aligns with the firm's 2025 earnings per share forecast and Corpay's risk premium. BMO Capital Markets maintained its $350 target on Corpay, predicting growth into 2024, while Wolfe Research adjusted its rating from Underperform to Peer Perform, recognizing the company's long-term growth prospects.
Corpay's recent acquisition of Paymerang is expected to generate an additional $25-35 million in revenue for the remainder of 2024. The company's diversified business model, high-margin operations, and strategic focus on Vehicle Payments and Corporate Payments are expected to drive significant growth. These recent developments highlight Corpay's ongoing efforts to strengthen its financial performance and market position.
InvestingPro Insights
Corpay's preliminary third-quarter results align with its strong market position, as reflected in recent InvestingPro data. The company's market capitalization stands at $23.66 billion, underscoring its significant presence in the corporate payments sector.
InvestingPro Tips highlight Corpay's financial strength and market performance. The company has been profitable over the last twelve months, with analysts predicting continued profitability this year. This aligns with Corpay's reiterated full-year adjusted earnings per share guidance of $19.00.
The company's P/E ratio of 24.15 and adjusted P/E ratio of 23.7 for the last twelve months as of Q2 2024 suggest that investors are willing to pay a premium for Corpay's earnings, possibly due to its growth prospects. This is further supported by the strong return over the last three months, with InvestingPro data showing a 16.62% price total return over that period.
Corpay's robust financial health is also evident in its impressive gross profit margin of 78.36% and operating income margin of 44.5% for the last twelve months as of Q2 2024. These figures indicate the company's ability to maintain profitability while pursuing growth strategies.
It's worth noting that InvestingPro offers additional tips and insights beyond those mentioned here. Investors interested in a more comprehensive analysis of Corpay's financial position and market outlook may find value in exploring the full range of InvestingPro Tips available.
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