Currency Exchange International’s third quarter was encouraging, says Industrial Alliance

Industrial Alliance Securities analyst Dylan Steuart says Currency Exchange International’s (Currency Exchange International Stock Quote, Chart, News: TSX:CXI) third quarter results were about what he expected, but says he is encouraged by the company’s growing pipeline.

Yesterday, Currency Exchange International reported its Q3, 2016 results. The company earned (U.S.) $1.5-million on revenue of $7.7-million, a topline that was up 15 per cent over the $6.7-million the company reported in the same period last year.

Steuart says things should start to get really interesting for the company later this year.

“Overall an encouraging quarter as CXI continues to produce positive momentum on revenue growth. Management continues to add to the client roster. CXI added 342 new wholesale clients (1,400 new transacting locations) in the quarter. With a sizeable Canadian institution added subsequent to quarter end (another ~800 branches), the pipeline remains strong ahead of the bank license approval. As expected, there was no formal update on the status of the bank license disclosed in the financial statements. However, we continue to forecast a C2016 license approval, the realization of which should allow management to capitalize on its assumed significant pipeline of wholesale clients.”

In a research update to clients today, Steuart maintained his “Buy” rating on Currency Exchange International.