ACI Worldwide Earnings: Here’s Why Investors are Selling Shares Now

ACI Worldwide, Inc. (NASDAQ:ACIW) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.69%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

ACI Worldwide, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.07 in the quarter versus EPS of $-0.05 in the year-earlier quarter.

Revenue: Rose 17.71% to $162 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ACI Worldwide, Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.33. It missed the average revenue estimate of $168.55 million.

Quoting Management: “ACI accomplished a great deal during Q1, including completing the acquisition of Online Resources,” said Chief Executive Officer Philip Heasley. “This transaction adds electronic bill payment to our payments capabilities, which will help us provide highly valued functionality to our financial institution customers. Additionally, our new sales bookings, net of term extensions were solid, growing 19% over last year, or roughly 10% excluding Online Resources’ contribution. We are excited and confident about the remainder of 2013. Our ability to provide increased value to our customers and growth to our investors has never been better.”

Key Stats (on next page)…

Revenue decreased 27.71% from $224.1 million in the previous quarter. EPS decreased 94.35% from $1.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.44 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $2.43 to a profit of $2.36 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)