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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