Earnings Beat: International Money Express, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a pretty great week for International Money Express, Inc. (NASDAQ:IMXI) shareholders, with its shares surging 12% to US$17.88 in the week since its latest yearly results. International Money Express reported US$459m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.20 beat expectations, being 6.2% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View 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$541.0m in 2022, which would reflect a decent 18% increase on its sales over the past 12 months. Per-share earnings are expected to grow 19% to US$1.45. Before this earnings report, the analysts had been forecasting revenues of US$511.2m and earnings per share (EPS) of US$1.38 in 2022. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for International Money Express 10% to US$22.10on the back of these upgrades. 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. There are some variant perceptions on International Money Express, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$20.50 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of International Money Express'historical trends, as the 18% annualised revenue growth to the end of 2022 is roughly in line with the 17% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that International Money Express is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards International Money Express following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on International Money Express. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple International Money Express analysts - going out to 2023, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.