Currency Exchange International, Corp. (TSE:CXI) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share fell badly short of expectations, coming in at US$0.13, some 50% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$18m. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Currency Exchange International

Taking into account the latest results, the current consensus from Currency Exchange International's solitary analyst is for revenues of US$88.9m in 2024. This would reflect an okay 6.9% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 38% to US$2.03. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$89.8m and earnings per share (EPS) of US$2.15 in 2024. The analyst seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$31.03, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Currency Exchange International's revenue growth is expected to slow, with the forecast 9.3% annualised growth rate until the end of 2024 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Currency Exchange International is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Currency Exchange International's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.