ATLANTA - Corpay, Inc. (NYSE: CPAY), a member of the S&P 500 and a global corporate payments company, has announced the completion of its acquisition of GPS Capital Markets, LLC, a provider of cross-border payment solutions for upper middle market companies, predominantly in the United States. This acquisition, alongside the recent addition of Paymerang, positions Corpay's Corporate Payments business to potentially surpass $1.5 billion in revenue by 2025, according to the company's chairman and CEO, Ron Clarke. The company's strong execution is reflected in its robust 78.29% gross profit margin and current trading near its 52-week high of $385.30. InvestingPro analysis reveals 8 analysts have revised their earnings upward for the upcoming period, suggesting positive momentum.
The two Corporate Payment acquisitions from this year are projected to contribute over $200 million in revenue and add approximately $0.50 to Cash EPS accretion in 2025. Clarke expressed enthusiasm about the integration of GPS into Corpay and anticipates a significant profit contribution from both acquisitions in the next year.
In a strategic move to streamline the company and concentrate on its core operations, Corpay also disclosed the completion of the divestiture of Comdata Merchant POS Solutions. The point-of-sale hardware and software solution, catering to truck stop merchants, was sold to PDI (OTC:IDXG) Technologies, a private equity-backed firm. This transaction was a result of a strategic review conducted last year aimed at simplifying Corpay's business model.
Further financial details and guidance for 2025 will be provided by Corpay when it reports its fourth-quarter earnings on February 5, 2025. For deeper insights into Corpay's financial health and growth prospects, investors can access comprehensive analysis through the detailed Pro Research Report, available exclusively on InvestingPro.
Corpay is known for offering a suite of electronic payment solutions that assist businesses and consumers in managing and paying expenses efficiently. Their services encompass vehicle-related expenses, travel expenses, and accounts payable, including both domestic and international payments. With a strong return on equity of 33% and healthy free cash flow yield of 7%, the company emphasizes the cost and time savings their payment solutions offer to customers. Discover more key metrics and insights about Corpay's market position through InvestingPro's extensive financial analysis tools.
This news is based on a recent press release statement from Corpay, Inc.
In other recent news, Corpay's third-quarter financial results showed revenue of approximately $1.029 billion and earnings per share of $3.90. Despite these figures, the company's Q3 guidance fell short of analysts' expectations, projecting an adjusted EPS of $4.90-$5.00 and revenue between $1.015-1.035 billion. BMO Capital Markets has maintained an Outperform rating on the company and increased the price target to $400, citing robust performance in several key areas of Corpay's operations. Meanwhile, Mizuho (NYSE:MFG) has maintained a Neutral rating on Corpay, with a steady price target of $265.00. CFRA raised its price target on Corpay to $385, maintaining a Buy rating, while Baird reiterated its Outperform rating, maintaining a price target of $376.00. Wolfe Research adjusted its rating from Underperform to Peer Perform, recognizing the company's long-term growth prospects. Corpay also recently completed the acquisition of Paymerang, expected to generate additional revenue for the remainder of 2024. These are the recent developments for Corpay.
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