Results: International Money Express, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

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. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for International Money Express

Taking into account the latest results, the consensus forecast from International Money Express' six analysts is for revenues of US$541.0m in 2022, which would reflect a notable 18% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to swell 19% to US$1.45. In the lead-up to this report, the analysts had been modelling revenues of US$511.2m and earnings per share (EPS) of US$1.38 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

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. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values International Money Express at US$24.00 per share, while the most bearish prices it at US$20.50. This is a very narrow spread of estimates, implying either that International Money Express is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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.

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.