Corpay Gears Up to Report Q1 Earnings: Here's What You Should Know

Corpay, Inc. CPAY is scheduled to release first-quarter 2025 results on May 6, after market close.

The company surpassed the Zacks Consensus Estimate in the past four trailing quarters. On average, it delivered an earnings surprise of 0.6%.

Corpay, Inc. Price, Consensus and EPS Surprise

Corpay’s Q1 Expectations

The Zacks Consensus Estimate for revenues is pegged at $1 billion, implying 8% growth from the year-ago quarter’s actual. The top line is expected to reflect improved performances across three segments.

We project revenues of $506.7 million from vehicle payments, suggesting 2.6% growth from the year-ago quarter’s actual. Toll tax hikes in Brazil, coupled with higher tags’ sales, are anticipated to have contributed to this segment’s revenue growth. Improved performance in the United States, facilitated by enhanced digital and field sales efforts driven by a surge in applications, approvals, and starts, is expected to have benefited the segment.

Our estimation for corporate payments is pegged at $335.7 million, suggesting a 26.5% jump on a year-over-year basis. Solid spending volumes and rising cross-border revenues are expected to have aided this segment’s revenue growth.

We project lodging revenues of $115.8 million for the quarter under review, implying 4.1% growth from the year-ago quarter’s actual. Enhanced same-store sales in CPAY’s workforce business are believed to have boosted this segment’s revenues.

The consensus estimate for the bottom line is pegged at $4.49 per share, hinting at 9.5% year-over-year growth. Robust top-line growth accompanied by strong expense management is expected to have aided the bottom line.

What Our Model Says About CPAY

Our proven model does not predict an earnings beat for Corpay this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

CPAY has an Earnings ESP of -0.22% and a Zacks Rank of 3 at present.

Stocks That Warrant a Look

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

FIS FIS: The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $2.5 billion, indicating growth of 1.9% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $1.20 per share, suggesting a 9.1% rise from the year-ago quarter’s reported number. FIS surpassed the consensus estimate in the past four quarters, with an average beat of 9.4%.

It has an Earnings ESP of +0.88% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

FIS is scheduled to declare first-quarter 2025 results on May 6. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Booz Allen Hamilton BAH: The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is pegged at $3 billion, indicating 8.9% growth from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $1.59 per share, suggesting a 20% increase from the year-ago quarter’s reported number. BAH surpassed the consensus estimate in three of the past four quarters and missed once, with an average beat of 6.7%.

Booz Allen Hamilton has an Earnings ESP of +5.74% and a Zacks Rank of 3. It is scheduled to declare fourth-quarter fiscal 2025 results on May 23.

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This article originally published on Zacks Investment Research (zacks.com).

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