Corpay Q3 2024 Earnings Report
Key Takeaways
Corpay reported strong Q3 2024 results, surpassing $1 billion in quarterly revenue for the first time, driven by Corporate Payments' 18% organic growth. Business fundamentals improved with strong same-store sales, retention, and overall sales performance. The company is confident in accelerating revenue growth in Q4 and is well-positioned for 2025.
Revenue increased by 6% to $1,029.2 million compared to Q3 2023.
Net income attributable to Corpay increased by 2% to $276.4 million compared to Q3 2023.
Adjusted net income attributable to Corpay increased by 6% to $354.5 million compared to Q3 2023.
The company closed the Paymerang acquisition on July 1st and is on track to close the GPS Capital Markets acquisition in the coming months.
Corpay
Corpay
Corpay Revenue by Segment
Corpay Revenue by Geographic Location
Forward Guidance
For the full year, the company is maintaining its cash EPS guide of $19.00 per share and slightly lowering its revenue guide to $3,995 million at the mid-point due to slightly unfavorable fuel prices and fx rates. The company is out-looking 13% revenue growth and 21% earnings growth at the mid-point for the fourth quarter. For the fourth quarter, the company expects revenue growth acceleration across each of its segments and the realization of synergies from the Paymerang acquisition.
Positive Outlook
- Total revenues between $1,040 million and $1,070 million.
- Net income per diluted share between $4.28 and $4.48.
- Adjusted net income per diluted share between $5.25 and $5.45.
- Weighted average U.S. fuel prices of $3.26 per gallon.
- Fuel price spreads relatively flat with the 2024 average.
Challenges Ahead
- Slightly unfavorable fuel prices
- Slightly unfavorable fx rates.
- Interest expense between $380 million and $390 million.
- An effective tax rate of approximately 23% to 24%.
- No impact related to material acquisitions not closed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income