Ebix Earnings: Here’s Why Investors are Not Happy Now
Ebix Inc. (NASDAQ:EBIX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4%.
Ebix Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 25.53% to $0.35 in the quarter versus EPS of $0.47 in the year-earlier quarter.
Revenue: Rose 6.87% to $51 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ebix Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.32. It missed the average revenue estimate of $52 million.
Quoting Management: “With a few distractions in the quarter, Ebix grew its revenue 7% year over year to $51.0 million which did not match our goals for the quarter. The entire Ebix team is currently focused on building our sales pipeline and implementing signed contracts” Ebix Chairman, President & CEO Robin Raina said. “We have had good customer wins in late June and July and are in the process of negotiating large customer contracts. We are focused on generating increased subscription and transaction revenue and adding to our net operating cash flow and income over the next few quarters.”
Key Stats (on next page)…
Revenue decreased 2.99% from $52.57 million in the previous quarter. EPS decreased 22.22% from $0.45 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.36. For the current year, the average estimate has moved down from a profit of $1.80 to a profit of $1.51 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)