(Reuters) – Business payments firm Corpay posted a 6% jump in its third-quarter adjusted profit on Thursday, driven by growth in its corporate and vehicle payments segments.
Strong corporate spending, buoyed by optimism for a soft economic landing, helped Atlanta, Georgia-based Corpay mitigate the effects of lower fuel prices compared to last year.
Corpay’s corporate payments business, which helps business automate and manage vendor payments, saw its revenue reach $321.9 million, a 25% jump from the prior year, thanks to higher client spending across all regions.
The company’s vehicle payments segment, its biggest by revenue, which allows governments and businesses managing vehicle fleets to track and manage fuel payments, generated $506.8 million in revenue, marking a 1% increase compared to the previous year.
“Business fundamentals were quite good with same store sales and retention improving and sales remaining strong,” CEO Ron Clarke said.
On an adjusted basis, the company posted a profit of $354.5 million, or $5.00 per share, for the quarter ended Sept. 30, compared to $335.1 million, or $4.49 per share, in the same period last year.
The business payments firm expects fourth-quarter adjusted net income per diluted share to be between $5.25 and $5.45, compared to analysts’ expectations of $5.36, according to data compiled by LSEG.
“We’re confident that our revenue growth will accelerate in the fourth quarter, which positions us well heading into 2025,” Clarke added.
Additionally, Corpay said it anticipates an organic revenue growth of 9% to 11% in 2025, driven by recovery in its North America’s fleet and lodging segments.
(Reporting by Atharva Singh & Arasu Kannagi Basil in Bengaluru; Editing by Mohammed Safi Shamsi)
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