Diversified Financial Services Stocks Q3 Highlights: Corpay (NYSE:CPAY)

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the diversified financial services industry, including Corpay (NYSE:CPAY) and its peers.

Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings.

The 10 diversified financial services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.9% on average since the latest earnings results.

Corpay (NYSE:CPAY)

Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE:CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.

Corpay reported revenues of $1.17 billion, up 13.9% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a satisfactory quarter for the company with full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ EBITDA estimates.

"Our third quarter results finished ahead of our expectations for both revenue and adjusted EPS,” said Ron Clarke, chairman and chief executive officer, Corpay, Inc.

Interestingly, the stock is up 13% since reporting and currently trades at $295.73.

Is now the time to buy Corpay? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Paymentus (NYSE:PAY)

Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Paymentus reported revenues of $310.7 million, up 34.2% year on year, outperforming analysts’ expectations by 10.7%. The business had a stunning quarter with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Paymentus scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 21.4% since reporting. It currently trades at $34.73.

Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: NCR Atleos (NYSE:NATL)

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE:NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

NCR Atleos reported revenues of $1.12 billion, up 4.5% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 2% since the results and currently trades at $37.08.

Read our full analysis of NCR Atleos’s results here.

WEX (NYSE:WEX)

Originally founded in 1983 as Wright Express to serve the fleet card market, WEX (NYSE:WEX) provides payment processing and business solutions across fleet management, employee benefits, and corporate payments sectors.

WEX reported revenues of $691.8 million, up 4% year on year. This result surpassed analysts’ expectations by 1.5%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ Account Servicing segment estimates but a slight miss of analysts’ Payment Processing segment estimates.

The stock is down 3.7% since reporting and currently trades at $148.37.

Read our full, actionable report on WEX here, it’s free for active Edge members.

Western Union (NYSE:WU)

With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE:WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.

Western Union reported revenues of $1.03 billion, flat year on year. This print beat analysts’ expectations by 1%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

Western Union achieved the highest full-year guidance raise among its peers. The stock is up 7.6% since reporting and currently trades at $8.76.

Read our full, actionable report on Western Union here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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