ACI Worldwide Inc (ACIW) shares surged 5.49% in pre-market trading on Thursday after the company reported better-than-expected third-quarter results and raised its full-year guidance. The payment software provider's strong performance and optimistic outlook have sparked investor enthusiasm.
For the third quarter, ACI Worldwide reported revenue of $482.36 million, surpassing analyst estimates of $465.3 million. The company's adjusted earnings per share of $1.09 also beat the consensus forecast of $0.80. Other key metrics, including net income, adjusted EBITDA, and operating income, all exceeded expectations.
Driving the strong results was a 10% year-over-year increase in recurring revenue, indicating robust demand for ACI's services. The company also highlighted the successful launch of ACI Connetic, its cloud-native payments hub, with the signing of its first customer. Additionally, ACI Worldwide announced a $500 million share repurchase authorization, further boosting investor confidence.
In light of its strong performance, ACI Worldwide raised its full-year 2025 revenue guidance to a range of $1.73 billion to $1.75 billion, up from the previous range of $1.71 billion to $1.74 billion. The company also increased its adjusted EBITDA outlook to between $495 million and $510 million. This positive outlook, combined with the better-than-expected quarterly results and share repurchase program, appears to be driving the pre-market stock surge.
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