One of the biggest stories of last week was how International Money Express, Inc. (NASDAQ:IMXI) shares plunged 23% in the week since its latest second-quarter results, closing yesterday at US$16.71. Results were roughly in line with estimates, with revenues of US$172m and statutory earnings per share of US$0.43. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for International Money Express
Following last week’s earnings report, International Money Express’ seven analysts are forecasting 2024 revenues to be US$668.8m, approximately in line with the last 12 months. Statutory per share are forecast to be US$1.81, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$688.2m and earnings per share (EPS) of US$1.87 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
The analysts made no major changes to their price target of US$24.40, suggesting the downgrades are not expected to have a long-term impact on International Money Express’ valuation. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic International Money Express analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$21.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await International Money Express shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that International Money Express’ revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2024 being well below the historical 18% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that International Money Express is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$24.40, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for International Money Express going out to 2026, and you can see them free on our platform here..
You can also see our analysis of International Money Express’ Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
