It has been about a month since the last earnings report for Corpay (CPAY Quick QuoteCPAY - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Corpay due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Corpay Q2 Earnings Beat Estimates

Corpay reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

CPAY’s earnings per share of $4.6 beat the consensus estimate by a slight margin and increased 8.6% on a year-over-year basis. The total revenues of $975.7 million surpassed the consensus estimate marginally and increased 2.9% from the year-ago quarter.

Segmental Results

Revenues from Corporate payments amounted to $288.5 million, up 17% year over year, outpacing our estimate of $265.4 million.

Vehicle payments’ revenues of $510.3 billion decreased marginally from the year-ago quarter. This figure beat our estimate of $508.1 million.

Lodging payments posted revenues of $122.4 million, declining 10% from the year-ago quarter. The reported figure lagged our prediction of $131 million.

Margins

EBITDA gained 4.1% from the year-ago quarter to $517.7 million, missing our expectation of $520.8 million. The EBITDA margin of 53.1%, up 70 basis points from the second quarter of 2023, missing our estimated 53.7%.

Balance Sheet & Cash Flow

CPAY exited the second quarter of 2024 with cash and cash equivalents of $1.4 billion compared with $1.3 billion in the first quarter of 2024. The long-term debt of $4.8 billion compared with $4.9 billion in the preceding quarter.

Corpay generated $540.9 million in cash from operating activities in the quarter. Capital expenditure amounted to $44.9 million.

FY24 Outlook

For fiscal 2024, CPAY expects revenues between $3.97 billion and $4.02 billion compared with the $3.96-$4.04 billion mentioned in the preceding quarter.

The guidance for adjusted net income per diluted share is updated to $18.85-$19.15 from the $18.80-$19.20 provided in the preceding quarter.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Corpay has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Corpay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Corpay belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Western Union (WU Quick QuoteWU - Free Report) , has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

Western Union reported revenues of $1.07 billion in the last reported quarter, representing a year-over-year change of -8.9%. EPS of $0.44 for the same period compares with $0.51 a year ago.

Western Union is expected to post earnings of $0.44 per share for the current quarter, representing a year-over-year change of +2.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Western Union. Also, the stock has a VGM Score of C.