International Money Express, Inc. (NASDAQ:IMXI) Just Released Its Annual Earnings: Here's What Analysts Think

Shareholders might have noticed that International Money Express, Inc. (NASDAQ:IMXI) filed its yearly result this time last week. The early response was not positive, with shares down 7.0% to US$19.70 in the past week. International Money Express reported in line with analyst predictions, delivering revenues of US$659m and statutory earnings per share of US$1.63, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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

Taking into account the latest results, the current consensus from International Money Express' six analysts is for revenues of US$691.2m in 2024. This would reflect a credible 4.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.5% to US$1.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$719.2m and earnings per share (EPS) of US$1.91 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the US$24.75 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on International Money Express, with the most bullish analyst valuing it at US$29.00 and the most bearish at US$21.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that International Money Express' revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2024 being well below the historical 18% p.a. growth over the last five years. Compare this to the 134 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.0% per year. Factoring in the forecast slowdown in growth, it looks like International Money Express is forecast to grow at about the same rate as the wider industry.

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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple International Money Express analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the International Money Express Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.