Overview

• US foreign exchange services firm's Q2 revenue rose 13% yr/yr, driven by Payments segment growth

• Adjusted EPS for Q2 rose 8% yr/yr to $0.40; reported net loss driven by discontinued operations

• Company completed exit from Canadian subsidiary EBC and repurchased 211,500 shares for $3.6 mln

Outlook

• Company says it will prioritize revenue growth in Banknotes and Payments businesses

• CXI plans to expand its branch network and online service offering

• Company cites ongoing macroeconomic and geopolitical uncertainties as impacting market conditions

Result Drivers

• PAYMENTS GROWTH - 73% increase in Payments revenue driven by higher trading volumes from existing and new customers

• BANKNOTES STAGNATION - Banknotes revenue rose 1% as new clients and large trades were offset by reduced activity from existing wholesale customers and weaker demand due to macroeconomic and geopolitical factors

• DISCONTINUED OPERATIONS LOSS - Net loss driven by exit from Canadian subsidiary EBC and recognition of cumulative foreign currency translation differences

Company press release: ID:nACS6dZkNa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Adjusted EPS		$0.4
Q2 EPS		-$0.7
Q2 Net Income		-$4.2 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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