Ebix, Inc. (EBIX) Social Stream
Featured Post From StockTwits About EBIX
$EBIX good color here - Ebix filed an 8-k pre-announcing Q1’21 revenue of $285M+ and operating income of $30M+, which compares to Craig Hallum's analysts (the only research analyst who follows it) estimates of $206.5M and $34.5M, respectively. $200M+ of the revenue and less than $1M of the operating profit in the quarter was from the gift card business, meaning operating margins ex the gift card business were 34%. The 8-K also notes Ebix will be late filing their Q1 10-Q, aiming to file it no later than Monday, May 17th. Based on management comments on the earnings call, the delay was expected, considering the auditor turnover and 10-K that was just filed two weeks ago. Craig Hallum Rates EBIX a Buy.Quagmaire98, published May 11, 2021
34% OM is impressive. 1Q Earnings out in 6 days.
The real big picture question is - after 12 years of public co. - how is it RR and the IR person have only been able to get one Wall Street Firm (out of 200 plus) to follow their stock?
Other Notable StockTweets About EBIX
$EBIX From CH notes:
Results Mostly In-Line With Pre-Announce. 10-K Filed With
Clean Audit And No Material Weaknesses. Valuation
Remains A Severe Disconnect From The Underlying
Fundamentals. Maintaining BUY Rating, $75 Price Target.
In sum, there were few surprises. With the 10-K and 2020 audit complete, the company now looks to get back on track and should report Q1’21 results shortly.
The company is targeting Q1’22 to launch the EbixCash IPO. Ebix has appointed 4 leading investment banks in India (SBI Capital Markets, ICICI Securities, Axis Capital, and Edelweiss Financial Services) and noted they will soon be announcing an international bank as a 5th bank. Ebix will be engaging both a national auditor and an international auditor for the IPO, who will complete the 3-year audit that is required in India to file the draft red herring
prospectus (DRHP), which is expected to be filed in Q4’21.
$EBIX Welcome to Seeking Alpha's Catalyst Watch - a breakdown of some of next week's actionable events that stand out. Check out Saturday morning's regular Stocks to Watch article for a full list of events planned for the week or the Seeking Alpha earnings calendar for companies due to report.
Monday - April 26
• Volatility watch - Stocks with a high level of volatility implied by options trading include MicroVision (NASDAQ:MVIS) and AgEagle Aerial Systems (NYSEMKT:UAVS). Names with an elevated level of short interest heading into next week include Carvana (NYSE:CVNA) and Ebix (NASDAQ:EBIX).
To summarize -
1. The $30M US acquisition escrow deposit that was prior auditor reason for quitting is back in an EBIX bank account - the auditor overreacted!
2. The surge in their gift card business has forced the company to deploy improved controls over the division.
3. Audited financials statements with a "CLEAN" auditors report will resolve all regulatory issues in days.
4. A quote: "Ebix was trading at a ridiculously cheap price, given the lucrative niche Ebix Insurance Exchange (US) had created, and the imminent IPO of Ebix's India business (EbixCash) would serve as a catalyst to +100% upside."
As the writer says, "Last call for the clearance sale on Ebix, the digital e-train to Mumbai. Hop on board."
The attached link is to a 2018 Forbes article about FMC's spin-off, via an IPO, of their lithium operations, including the reasons that management decided to spin-off the operation. With this information, you are as capable as I might be at constructing EBIX reasoning/scenarios that drove this decision. The November 12, 2019, Q3 2019 earnings call transcript (SEC Rule 425 filing found on EDGAR) has the most complete discussion of the EBIXCash opportunity I've found, and would be helpful reading, also.
It wouldn't be a surprise that the FMC reasoning and EBIX reasoning are very similar. EBIXCash has gained so much traction that the parent business needs a significant increase in capital to seize that opportunity, and the parent organization isn't capable of funding the amount by itself.
I hope this adds to the information you are reaching out for, and I am glad to provide it to you.