Acxiom Corp Earnings: Revenue Falls After Four Straight Quarters of Rising, Net Income Declines

Acxiom Corporation (NASDAQ:ACXM) reported its results for the third quarter. Acxiom provides marketing technology and services that enable marketers to successfully manage audiences, personalize consumer experiences, and create profitable customer relationships.

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Acxiom Earnings Cheat Sheet for the Third Quarter

Results: Net income for Acxiom Corporation fell to $7.9 million (10 cents per share) vs. $20.8 million (25 cents per share) a year earlier. This is a decline of 61.9% from the year earlier quarter.

Revenue: Fell 2.4% to $280.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ACXM reported adjusted net income of 22 cents per share. By that measure, the company beat the mean estimate of 20 cents per share. It fell short of the average revenue estimate of $307.2 million.

Quoting Management: “We are pleased with our recent progress, notably our improved cash flow and earnings, but we still have much more to accomplish,” said Acxiom Chief Executive Officer and President Scott Howe. “We have realigned and strengthened our management team, established a clear strategy and improved our operating visibility. Looking ahead, we have started the process of investing in new data analytics and product capabilities and must also seek to increase top line Marketing and Data Services growth. In addition, the team will also be focusing on improving the financial performance of our non-U.S. operations.”

Key Stats:

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 19 cents versus a mean estimate of net income of 17 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 22 cents a share to 20 cents over the last sixty days. The average estimate for the fiscal year is now 74 cents per share, down from 77 cents sixty days ago.

Competitors to Watch: TeleTech Holdings, Inc. (NASDAQ:TTEC), CSG Systems Intl., Inc. (NASDAQ:CSGS), Teradata Corporation (NYSE:TDC), Convergys Corporation (NYSE:CVG), EMC Corporation (NYSE:EMC), Intl. Business Machines Corp. (NYSE:IBM), RightNow Technologies (NASDAQ:RNOW), Computer Sciences Corp. (NYSE:CSC), Syntel, Inc. (NASDAQ:SYNT), and Edgewater Technology Inc. (NASDAQ:EDGW).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com