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It's been a pretty great week for ACI Worldwide, Inc. (NASDAQ:ACIW) shareholders, with its shares surging 13% to US$57.35 in the week since its latest annual results. Revenues were US$1.6b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.91, an impressive 23% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for ACI Worldwide
Taking into account the latest results, the most recent consensus for ACI Worldwide from five analysts is for revenues of US$1.70b in 2025. If met, it would imply a satisfactory 6.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 8.3% to US$2.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.70b and earnings per share (EPS) of US$1.87 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$65.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ACI Worldwide, with the most bullish analyst valuing it at US$71.00 and the most bearish at US$60.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that ACI Worldwide's rate of growth is expected to accelerate meaningfully, with the forecast 6.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. So it's clear that despite the acceleration in growth, ACI Worldwide is expected to grow meaningfully slower than the industry average.