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ACI Worldwide Misses on Both Revenue and Earnings

By Seth Jayson – Updated Apr 10, 2017 at 1:27PM

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Just the facts, Fool.

ACI Worldwide (Nasdaq: ACIW) reported earnings on May 2. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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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. 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.

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