The 10-second takeaway
For the quarter ended March 31 (Q1), ACI Worldwide missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share dropped significantly. GAAP loss per share was unchanged.
Gross margins dropped, operating margins shrank, net margins were steady.
ACI Worldwide logged revenue of $162.0 million. The six analysts polled by S&P Capital IQ wanted to see sales of $168.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $137.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.07. The five earnings estimates compiled by S&P Capital IQ averaged $0.49 per share. Non-GAAP EPS of $0.07 for Q1 were 75% lower than the prior-year quarter's $0.28 per share. GAAP EPS of -$0.05 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.2%, 850 basis points worse than the prior-year quarter. Operating margin was -2.5%, much worse than the prior-year quarter. Net margin was -1.3%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $196.7 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $897.3 million. The average EPS estimate is $2.99.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 51 members out of 63 rating the stock outperform, and 12 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give ACI Worldwide a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ACI Worldwide is hold, with an average price target of $46.60.
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