Ebix (NASDAQ:EBIX) shares surged by nearly 15% today after the on-demand software and eCommerce services provider announced its results for the third quarter. Revenue declined by 1.1% year-over-year to $119.2 million, while EPS of -$0.11 came in lower than estimates by $0.17. Last week, Ebix noted that its quarterly report for the quarter ending September 30 would be delayed due to negotiations and work associated with its credit facility and forbearance agreement.
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Exchanges continued to be the largest revenue channel for the company, with revenue trending marginally lower by 0.7% to $99.29 million. Revenue from the RCS channel also dropped by 2.8% to $19.94 million. Further, the company’s operating income dropped by 32.4% year-over-year to $20.5 million thanks to restructuring and IPO marketing costs.
While the overall operating environment remains difficult, Ebix plans to focus on higher-margin businesses with the goal of driving its top line and operating income.
What is the Price Target for Ebix Stock?
Overall, the Street has a Moderate Buy consensus rating on Ebix. Following a nearly 83% slide in the company’s share price over the past year, the average EBIX price target of $14.75 points to a 286.1% potential upside.
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