Ebix Inc. Beats Q4 Earnings Estimates, Shares Soar

Shares of insurance software maven Ebix jumped as much as 6.8% as fourth-quarter earnings put Wall Street estimates to shame.

Mar 14, 2014 at 3:10PM
Ebix Logo

Image source: Ebix.

Insurance software specialist Ebix (NASDAQ:EBIX) just reported results for the fourth quarter of 2013.

Sales decreased 6% year over year to land at $50.8 million. Generally accepted accounting principles earnings fell 17% to $0.40 per share. Analysts were looking for earnings near $0.31 per share on $50.8 million in sales.

Ebix's results were hampered by currency effects, as the U.S. dollar strengthened significantly versus the Australian dollar and Brazilian real during the fourth quarter.

Chairman and CEO Robin Raina saw 2013 as a good test of Ebix's client relationships, a test he believes passed with flying colors. "We are cautiously optimistic about the future as we continue to build momentum in terms of growing our business," Raina said in a prepared statement.

Looking ahead, Raina said he plans to use strategic acquisitions as a growth driver "both in the short and long term." That means picking up related businesses with strong recurring revenues, raising the Ebix business framework around them, and reaping 35% operating margins in the acquired businesses.

Ebix shares jumped as much as 6.8% higher on the news, before settling down to a more modest 2.5% price increase. The stock has gained 56% over the last six months.

Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days.

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A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

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I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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