Clean Harbors Announces Increases To Used Oil Pricing And Service Stop Fees In Safety-Kleen Waste Oil Collection Business

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

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CPAY’s earnings per share of $5 beat the consensus estimate by a slight margin and increased 11.4% on a year-over-year basis. The total revenues of $1 billion outpaced the consensus estimate marginally and grew 6% from the year-ago quarter.

The stock has gained 21% over the past three months compared with the 18.2% rise of the industry it belongs to and 12% growth of the Zacks S&P 500 composite.

Three Months Price Performance

Corpay’s Segmental Results

Revenues from Corporate payments amounted to $321.9 million, increasing 25% year over year, surpassing our estimate of $296.2 million. A rise in the spend volume, stable card penetration rates and strength across direct businesses drove this segment’s revenues.

Vehicle payments’ revenues of $506.8 billion rose 1% from the year-ago quarter. This figure missed our estimate of $520 million. Increased transactions and higher revenues per transaction, which were broad-based across all businesses and geographies, fueled this segment’s growth.

Lodging payments posted revenues of $134 million, declining 5% from the year-ago quarter. The reported figure lagged our expectation of $139.1 million.

CPAY’s Margins

EBITDA increased 5.4% from the year-ago quarter to $557.7 million, missing our projection of $544.2 million. The EBITDA margin was 54.2%, which moved down 30 basis points from the third quarter of 2023 but beat our estimate of 53.1%.

Balance Sheet & Cash Flow of CPAY

Corpay exited the third quarter of 2024 with cash and cash equivalents of $1.3 billion compared with $1.4 billion in the second quarter of 2024. The long-term debt was $5.3 billion compared with $4.8 billion in the preceding quarter.

CPAY generated $400.8 million in cash from operating activities in the quarter. Capital expenditure amounted to $45.8 million.

Corpay’s Q4 & 2024 Outlook

For the fourth quarter of 2024, CPAY expects revenues of $1.04-$1.07 billion. The Zacks Consensus Estimate for revenues is pegged at $1.03 billion, which is lower than the company’s guided range. The guidance for adjusted net income per diluted share is $5.25-$5.45. The consensus estimate for earnings is pegged at $4.98 per share, lower than the company’s guided range.

For fiscal 2024, CPAY updated the revenue guidance to $3.98-$4.01 billion from the $3.97-$4.02 billion given in the preceding quarter. The mid-point ($3.99 billion) of the guided range meets the Zacks Consensus Estimate. The guidance for adjusted net income per diluted share was updated to $18.90-$19.10 from the $18.85-$19.15 stated in the previous quarter. The mid-point ($19 per share) of the guided range is higher than the Zacks Consensus Estimate for earnings of $18.98.

Currently, CPAY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of CPAY’s Peers

Clean Harbors, Inc. CLH reported mixed third-quarter 2024 results.

CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.

Insperity, Inc. NSP reported mixed third-quarter 2024 results.

NSP’s adjusted earnings (excluding 32 cents from non-recurring items) of 39 cents per share outpaced the consensus estimate by 21.9% but decreased 73.3% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate marginally but increased from the year-ago quarter.

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Clean Harbors, Inc. CLH reported mixed third-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate while revenues beat the same.

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Despite the earnings miss, the stock has gained 10.4% since the earnings release on Oct. 30, 2024.

CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter’s actual. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.

The stock has gained 23.6% over the past six months, outperforming the 10.8% rise of the industry it belongs to and 15% growth of the Zacks S&P 500 composite.

Six Months Price Performance

Here are three stocks added to the Zacks Rank #24 (Strong Sell) List today:

AGNC Investment Corp. AGNC is a real estate investment trust. The Zacks Consensus Estimate for its current year earnings has been revised 8.1% downward over the last 60 days.

Ardmore Shipping Corporation ASC engages in the seaborne transportation of petroleum products and chemicals. The Zacks Consensus Estimate for its current year earnings has been revised 9.5% downward over the last 60 days.

Clean Harbors, Inc. CLH is a provider of environmental and industrial services. The Zacks Consensus Estimate for its current year earnings has been revised 4.7% downward over the last 60 days.

View the entire Zacks Rank #5 List.

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Here are three stocks added to the Zacks Rank #24 (Strong Sell) List today:

Alerus Financial Corporation ALRS is the bank holding company for Alerus Financial, National Association. The Zacks Consensus Estimate for its current year earnings has been 20.5% downward over the last 60 days.

Asbury Automotive Group, Inc. ABG is an automotive retailer. The Zacks Consensus Estimate for its current year earnings has been revised 5.4% downward over the last 60 days.

Clean Harbors, Inc. CLH is a provider of environmental and industrial services. The Zacks Consensus Estimate for its current year earnings has been revised 4.7% downward over the last 60 days.

View the entire Zacks Rank #5 List.

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