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International Money Express (NasdaqCM:IMXI) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

International Money Express, Inc. (NasdaqCM:IMXI) is scheduled to report Q3 earnings results on November 4, 2020.

The company is expected to report earnings of $0.29/share on revenue of $92.61 million. The consensus earnings per share (EPS) of $0.29/share is based on a poll of 6 analysts and represents a growth in eps of 17.3% over the same quarter last year, when the company reported earnings of $0.25/share.

The revenue forecast of $92.61 million based on a poll of 8 analysts implies a year-over-year (YoY) growth in revenue of 8.5%. Last year the company reported $85.334 million in revenue for the quarter.

Expected to report EPS growth of 17.3% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $92.61 $85.33 8.5%
EPS $0.29 $0.25 17.3%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from International Money Express, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.19 $0.28 45.1% Beat
Q1, 2020 $0.17 $0.20 19.3% Beat
Q4, 2019 $0.20 $0.20 1.1% Beat
Q3, 2019 $0.21 $0.25 19.0% Beat
Q2, 2019 $0.19 $0.26 39.8% Beat
Q1, 2019 $0.14 $0.09 −35.7% Missed
Q4, 2018 $0.11 $0.15 33.8% Beat
Q3, 2018 $0.06 -$0.07 −225.1% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 18.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $13.98 $16.54 18.3% Increase
April 30, 2020 $8.91 $10 12.2% Increase
March 9, 2020 $9.79 $9.30 −5.0% Decline
November 11, 2019 $15.25 $13.79 −9.6% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.10, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.10 implies a 0.1% chance of earnings manipulation.

Fundamentals And Technical Analysis

International Money Express, Inc. is currently trading at $14.13/share, down −2.5% for the day. The company is trading at approximately 75.5% of its 52-week high of $18.69/share. The company’s stock price is down −14.6% since the last earnings report and down −9.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 39.65 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqCM:IMXI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 22.19 and a forward P/E multiple of 13.90.

International Money Express, Inc.’s current share price also implies a price-to-book (P/B) multiple of 7.42. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $14.13
P/E Ratio 22.2x
P/E Ratio (Fwd) 13.9x
PEG Ratio 0.0
Total Debt / Total Capital 14.2%
Levered Free Cash Flow $36.274 million
EV / EBITDA 33.2x

Finbox

International Money Express, Inc. is a small-cap stock with a market capitalization of $551.5 million and a total enterprise value of $540.6 million. The company operates in the Information Technology sector and the IT Services industry.

International Money Express, Inc., through its subsidiary, operates as a money remittance services company in the United States, Latin America, Mexico, Africa, Central and South America, and the Caribbean. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and via Internet-enabled mobile devices. The company was formerly known as FinTech Acquisition Corp. II. International Money Express, Inc. is headquartered in Miami, Florida.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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