Corpay, Inc. Poised for Earnings Growth as Analysts Anticipate Strong Results
Corpay, Inc. (CPAY), based in Atlanta, Georgia, specializes in payments solutions that assist both businesses and consumers with vehicle-related expenses and lodging payments. With a market capitalization of $24.3 billion, the company provides global payment services, currency risk management, and invoice automation tools designed to simplify and secure payments for various needs, including tolls, insurance, and accommodations. Investors are looking forward to the announcement of Corpay’s fiscal fourth-quarter earnings for 2024, set for Wednesday, February 5.
Projected Earnings Shine as Analysts Optimistic Ahead of Q4 Report
As the earnings report approaches, analysts predict that CPAY will post a profit of $5.05 per share on a diluted basis, reflecting a significant increase of 21.1% from the $4.17 per share recorded in the same quarter last year. The company has a strong track record, having consistently exceeded Wall Street’s earnings per share (EPS) expectations in its previous four quarterly reports.
Full Year Projections Indicate Steady Growth Ahead
For the entirety of fiscal 2024, analysts anticipate an EPS of $17.84, which marks a 13.2% increase from the $15.76 earned in fiscal 2023. Looking further ahead, they estimate a 16.4% rise in EPS to $20.76 for fiscal 2025.
Impressive Stock Performance Outshines Key Indices
In the past year, CPAY shares have shown remarkable performance, rising 24% and surpassing the S&P 500’s ($SPX) gains of 22%. Additionally, CPAY has outpaced the Technology Select Sector SPDR Fund’s (XLK) increase of 18.2% during the same time period.
Recent Quarterly Results Reinforce Positive Outlook
On November 7, Corpay reported solid Q3 results, leading to a more than 5% jump in its stock on the next trading day. The adjusted EPS of $5 exceeded analysts’ expectations of $4.98, while the company’s revenue hit $1 billion, aligning with Wall Street forecasts. Corpay projects its full-year adjusted EPS will fall between $18.90 and $19.10, with revenue anticipated to be within the range of $3.98 billion to $4.01 billion.
Analyst Ratings Indicate Strong Confidence in Corpay’s Future
The consensus among analysts is moderately bullish, with an overall “Moderate Buy” rating for CPAY stock. Out of 18 analysts tracking the company, 11 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and five propose a “Hold” rating. The average analyst price target stands at $399.59, indicating a potential upside of 13.4% from current prices.
On the date of publication,
Neha Panjwani
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