The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ACI Worldwide beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped.
Gross margin improved, operating margins dropped, and net margins shrank.
ACI Worldwide booked revenue of $135.0 million. The seven analysts polled by S&P Capital IQ anticipated sales of $130.9 million on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $141.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.88. The five earnings estimates compiled by S&P Capital IQ predicted $0.75 per share on the same basis. GAAP EPS of $0.70 for Q4 were 13% lower than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.7%, 100 basis points better than the prior-year quarter. Operating margin was 27.4%, 290 basis points worse than the prior-year quarter. Net margin was 17.7%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $114.8 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $558.4 million. The average EPS estimate is $1.94.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 50 members out of 62 rating the stock outperform, and 12 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give ACI Worldwide a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ACI Worldwide is outperform, with an average price target of $37.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.