Corpay, Inc. (CPAY) is an Atlanta-based corporate payments company with a market cap of $20.6 billion. It provides businesses and consumers with simple, controlled payment solutions. CPAY is scheduled to release its fiscal 2024 Q2 earnings results on Wednesday, Aug. 7.
Ahead of the event, analysts expect Corpay to report a profit of $4.20 per share, up 9.1% from $3.85 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters, while missing on one other occasion. Corpay’s EPS of $3.84 for the last reported quarter beat the consensus estimate by 1.1%, driven by implementations and ramping of new sales.
Looking ahead, analysts expect Corpay to report an EPS of $17.82 in fiscal 2024, up 13.1% from $15.76 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to rise 15.3% annually to $20.54.
Over the past 52 weeks, CPAY stock has soared by 20.4%, outperforming the broader S&P 500 Index's ($SPX) 18.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 18% returns during the same period.
On June 19, Corpay signed a definitive agreement to acquire GPS Capital Markets, LLC for about $725 million. Following the acquisition, Corpay will process cross-border payments for approximately 23,000 customers in more than 145 currencies across six continents. CPAY edged up nearly 4% in the following trading session.
However, on May 8, the company released its Q1 earnings report, and the stock declined 7% in the subsequent trading session. Despite beating bottom-line estimates, Corpay failed to surpass its topline expectations. Moreover, it lowered the guidance for fiscal 2024, expecting revenues between $3.96 billion and $4.04 billion compared with the range of $4.04 billion to $4.12 billion stated previously, further upsetting investors.
The current consensus opinion on Corpay stock is “Moderate Buy” overall. Out of 19 analysts covering the stock, 11 suggest a “Strong Buy,” two recommend a “Moderate Buy,” five advocate a “Hold,” and the remaining analyst advise a “Strong Sell.”
The average analyst price target for Corpay is $325.06, indicating a potential upside of 9.2% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
