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Investing.com -- Shares of International Money Express, Inc. (NASDAQ: NASDAQ:IMXI) tumbled 13% following the company’s announcement that its fourth-quarter earnings fell short of analyst expectations and its decision to conclude its strategic review process without a deal. The money transfer services provider reported a fourth-quarter EPS of $0.57, which was $0.03 below the analyst estimate of $0.60. Revenue for the quarter was reported at $164.8 million, missing the consensus estimate of $169.01 million.
The company also provided guidance for the first quarter of 2025, projecting an EPS range of $0.40-$0.43, which is below the consensus of $0.49. Revenue guidance for Q1 2025 was set at $145.5-149.9 million, compared to the consensus of $155 million. For the full fiscal year 2025, International Money Express expects an EPS of $2.09-$2.26 and revenues between $657.5-677.5 million, both forecasts falling short of the consensus estimates of $2.41 EPS and $684 million in revenue.
Bob Lisy, Chairman, President, and CEO, commented on the results and the company’s strategic direction, emphasizing the commitment to scaling their digital business and leveraging their retail model. Despite the strategic review initiated in November 2024, which included discussions with various potential investors and was assisted by independent financial and legal advisors, no definitive offer emerged that would enhance shareholder value more than the company’s current business model and strategic plan.
The company’s full-year 2024 results showed relatively flat revenues at $658.6 million, attributed mainly to a slowdown in remittance market growth to Latin America, which was slightly offset by growth in their agent base and digital offerings. Net income for the year decreased by 1.2% to $58.8 million, with diluted EPS increasing by 9.8% to $1.79. Adjusted EBITDA saw a modest increase of 1.1% to $121.3 million.
Comparing the fourth quarter of 2024 to the same period in the previous year, revenue declined by 4.1%, primarily due to a slowdown in the overall remittance market growth to Latin America, particularly in retail. However, digital money transfer revenues grew by 48.3%. Net income for the quarter decreased by 12.1% to $15.4 million.
International Money Express ended the fourth quarter with $130.5 million in cash and cash equivalents. However, net free cash generated for the quarter was down, mainly due to the acquisition of Amigo Paisano and transaction costs related to the strategic review. The company also resumed its share repurchase program, with $63.2 million remaining available for future repurchases.
Looking ahead, the company plans to invest aggressively in digital customer acquisition and marketing to support its profitable retail engine, as discussed at their Investor Day. This strategy is expected to impact the company’s outlook for 2025.
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