UPDATE: MiX Telematics (MIXT) Misses Q4 EPS by 1c, Miss on Revenues; Boosts FY18 Revenue Guidance Above Consensus, FY18 EPS Outlook In-Line

MiX Telematics (NYSE: MIXT) reported Q4 EPS of $0.14, $0.01 worse than the analyst estimate of $0.15. Revenue for the quarter came in at $30.4 million versus the consensus estimate of $35.62 million.

Business Outlook

MiX Telematics has translated U.S. Dollar amounts in this Business Outlook paragraph from South African Rand at the exchange rate of R11.9355 per $1.00, which was the R/$ exchange rate reported by Oanda.com as at January 29, 2018.

Third Quarter Highlights:

• Subscription revenue of R376 million ($30.4 million), up over 21% year over year on a constant currency basis
• Net subscriber additions of 24,700, bringing the total subscriber base to over 664,000, up 10% year over year
• Operating profit of R53 million ($4.3 million), up 11% year over year
• Adjusted EBITDA of R115 million ($9.3 million), up 30% year over year
• Adjusted EBITDA margin of 25.9% continues the quarterly improvement trend since the start of fiscal 2017. Reported Adjusted EBITDA margins were as follows: Q1 2017 15.9%, Q2 2017 18.0%, Q3 2017 21.9%, Q4 2017 22.3%, Q1 2018 23.1%, Q2 2018 25.1%, Q3 2018 25.9%
• Company raises full-year guidance for both revenue and profit

Based on information as of today, February 1, 2018, the Company is issuing the following financial guidance for the full 2018 fiscal year:

• Subscription revenue - R1,432 million to R1,436 million ($120.0 million to $120.3 million), which would represent subscription revenue growth of 15.5% to 15.8% compared to fiscal 2017. Previous guidance was R1,420 million to R1,432 million.
• Total Revenue - R1,690 million to R1,695 million ($141.6 million to $142.0 million), which would represent revenue growth of 9.7% to 10.1% compared to fiscal 2017. Previous guidance was R1,661 million to R1,687 million.
• Adjusted EBITDA - R417 million to R428 million ($34.9 million to $35.9 million), which would represent Adjusted EBITDA growth of 38.3% to 41.9% compared to fiscal 2017. Previous guidance was R403 million to R421 million.
• Adjusted earnings per diluted ordinary share of 23.1 to 24.8 South African cents based on 572 million diluted ordinary shares in issue (previous guidance was 22.0 to 23.5 South African cents based on 568 million diluted ordinary shares in issue), and based on an effective tax rate of 28.0% to 31.0%. At a ratio of 25 ordinary shares to one ADS, this equates to adjusted earnings per diluted ADS of 48.4 to 51.9 U.S. cents.

GUIDANCE:

MiX Telematics sees FY2019 EPS of $0.48-$0.52, versus the consensus of $0.51. MiX Telematics sees FY2019 revenue of $141.6-142 million, versus the consensus of $139.74 million.

For earnings history and earnings-related data on MiX Telematics (MIXT) click here.

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