Business payments company Corpay (NYSE:CPAY) will be reporting earnings this Thursday after market hours. Here’s what investors should know.
Corpay beat analysts’ revenue expectations last quarter, reporting revenues of $1.25 billion, up 20.7% year on year. It was a strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and .
Is Corpay a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Corpay’s revenue to grow 20.7% year on year, improving from the 7.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Corpay has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Corpay’s peers in the diversified financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Donnelley Financial Solutions delivered year-on-year revenue growth of 2.2%, meeting analysts’ expectations, and Paymentus reported revenues up 30.2%, topping estimates by 6.4%. Paymentus traded down 7.8% following the results.
Read our full analysis of Donnelley Financial Solutions’s results here and Paymentus’s results here.
There has been positive sentiment among investors in the diversified financial services segment, with share prices up 8% on average over the last month. Corpay is up 3.3% during the same time and is heading into earnings with an average analyst price target of $384.08 (compared to the current share price of $308.00).
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