The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ACI Worldwide missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins grew, net margins grew.
ACI Worldwide logged revenue of $224.1 million. The six analysts polled by S&P Capital IQ predicted a top line of $241.1 million on the same basis. GAAP reported sales were 66% higher than the prior-year quarter's $135.0 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 $1.37. The five earnings estimates compiled by S&P Capital IQ anticipated $1.30 per share. Non-GAAP EPS of $1.37 for Q4 were 56% higher than the prior-year quarter's $0.88 per share. GAAP EPS of $1.24 for Q4 were 77% higher than the prior-year quarter's $0.70 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 73.0%, 370 basis points worse than the prior-year quarter. Operating margin was 33.7%, 390 basis points better than the prior-year quarter. Net margin was 22.2%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $170.6 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $780.8 million. The average EPS estimate is $2.75.
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 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 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 hold, with an average price target of $44.57.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.