ACIW Earnings Prediction
The chart below shows how ACIW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACIW sees a -7.12% change in stock price 10 days leading up to the earnings, and a +1.96% change 10 days following the report. On the earnings day itself, the stock moves by +5.04%. This data can give you a slight idea of what to expect for the next quarter's release.
ACIW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
451.75M
24.44%
20.96%
Gross Margin
49.34%
15.60%
29.16%
Operating Margin
27.20%
59.44%
87.72%
Net Margin
18.02%
72.61%
117.90%
EPS
0.77
120.00%
165.52%
No Data Available
ACIW Earnings Analysis
ACI Worldwide, Inc. Corporation (ACIW.O) Earnings Conference Call
Positive
Strong Q3 Revenue Performance: Q3 results were ahead of expectations with total revenue up 24% year-over-year, reaching $452 million.
Bank Segment Performance: In the Bank segment, revenue was up 43% to $222 million, with adjusted EBITDA increasing 69% to $154 million, driven by a 72% growth in real-time payments.
Merchant Segment Performance: The Merchant segment saw revenue grow 38% to $50 million, with adjusted EBITDA soaring 159% to $27 million, reflecting strong performance from licensed software renewals.
Strong Cash Flow Generation: Cash flow from operations was $54 million, more than double compared to Q3 last year, highlighting strong cash flow generation.
Share Repurchase Activity: The company repurchased approximately 200,000 shares for $8 million during the quarter, bringing the year-to-date total to approximately 4 million shares for $128 million.
Negative
Biller Segment EBITDA Decline: 1. Declining Biller Segment EBITDA: The Biller segment's adjusted EBITDA was $31 million, down compared to Q3 last year, attributed to a particularly strong quarter last year that included one-time non-recurring margin benefits that did not recur in Q3 2024.
Debt Impact on Flexibility: 2. High Debt Levels: ACI Worldwide ended the quarter with a debt balance of $1 billion, indicating a significant leverage that could impact financial flexibility despite a net debt leverage ratio of 1.6x.
Mid-Tier Banks Opportunity Missed: 3. Limited Contribution from Mid-Tier Banks: The contribution from mid-tier banks remains very small, with ACI focusing primarily on larger banks, indicating a missed opportunity in a potentially lucrative market segment.
Biller Revenue Seasonality: 4. Seasonality in Biller Revenue: The Biller segment's revenue growth was only 5%, reflecting a slowdown compared to previous quarters, primarily due to higher-than-expected volumes with the IRS and tough year-over-year comparisons.
Competitive Pressure in Payments: 5. Increased Competition in Real-Time Payments: While ACI has secured new contracts in real-time payments, the competitive environment remains challenging, with significant pressure to maintain market share against emerging players.
ACIW FAQs
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ACIW Earning Call Sentiment
ACI Worldwide Inc. (ACIW) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ACIW.O
-2.21%Positive
The earnings call reveals strong financial performance, with revenue and EBITDA growth across segments, especially in the Bank segment. The optimistic guidance for 2024 and strategic focus on new business opportunities further enhance sentiment. The share repurchase program and strong cash flow also support a positive outlook. However, potential risks from debt and market volatility are noted, but these are outweighed by the company's current growth trajectory and strategic initiatives. Given the market cap, the stock price is likely to see a positive movement of 2% to 8% over the next two weeks.
