ACI Worldwide, Inc. (NASDAQ:ACIW) just released its latest first-quarter results and things are looking bullish. The company beat forecasts, with revenue of US$395m, some 8.3% above estimates, and statutory earnings per share (EPS) coming in at US$0.55, 208% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, ACI Worldwide's six analysts currently expect revenues in 2025 to be US$1.70b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 7.6% to US$2.38 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.70b and earnings per share (EPS) of US$2.09 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.

See our latest analysis for ACI Worldwide

There's been no major changes to the consensus price target of US$62.29, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic ACI Worldwide analyst has a price target of US$71.00 per share, while the most pessimistic values it at US$48.73. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that ACI Worldwide's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2025 being well below the historical 4.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that ACI Worldwide is also expected to grow slower than other industry participants.

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The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ACI Worldwide following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$62.29, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for ACI Worldwide going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for ACI Worldwide (1 can't be ignored!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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