The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ACI Worldwide whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
ACI Worldwide tallied revenue of $155.1 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $175.3 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $112.1 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 $0.29. The five earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.14 for Q3 were 55% lower than the prior-year quarter's $0.31 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 62.7%, 720 basis points worse than the prior-year quarter. Operating margin was 5.4%, 460 basis points worse than the prior-year quarter. Net margin was 3.6%, 580 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $224.0 million. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $689.5 million. The average EPS estimate is $1.97.
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), 15 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 $45.86.
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