International Money Express (IME), a leading money-transfer services company, announced a downward revision of its full-year revenue outlook and reported lower-than-expected revenue for the second quarter. This news led to a 12% drop in IME's shares during pre-market trading, with the stock price declining to $21.00.
Revised Revenue Expectations
IME now anticipates full-year revenue to fall within the range of $644.9 million to $673.0 million, which is lower than the previously projected range of $667.0 million to $688.5 million. The company also provided its forecast for third-quarter revenue, expecting it to be between $165.7 million and $176.8 million. Additionally, IME stated that its adjusted earnings per share for the third quarter will range from 49 cents to 52 cents.
Second Quarter Performance
During the second quarter, IME's net profit declined to $15.4 million, or 42 cents per share. This represents a decrease compared to the same period last year when the company reported a net profit of $16.0 million, or 41 cents per share. After accounting for one-time items, IME's earnings per share for the second quarter came in at 50 cents, slightly below analysts' expectations of 52 cents.
Revenue Growth and Analyst Projections
While IME achieved a notable 24% increase in revenue, reaching $169.2 million during the second quarter, it fell short of analysts' projected revenue of $171 million according to FactSet data.