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.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ACI Worldwide's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$65.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ACI Worldwide. Long-term earnings power is much more important than next year's profits. We have forecasts for ACI Worldwide going out to 2026, and you can see them free on our platform here.

Even so, be aware that ACI Worldwide is showing 1 warning sign in our investment analysis , you should know about...

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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.