Acxiom Corporation Earnings Cheat Sheet: Rise in Profit

Acxiom Corporation (NASDAQ:ACXM) reported its results for the first quarter. Acxiom Corporation 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 First Quarter

Results: Net income for Acxiom Corporation rose to $11 million (13 cents per share) vs. $9.8 million (12 cents per share) in the same quarter a year earlier. This marks a rise of 11.9% from the year earlier quarter.

Revenue: Rose 6.8% to $288.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ACXM fell in line with the mean analyst estimate of 13 cents per share. It beat the average revenue estimate of $276.6 million.

Quoting Management: Jerry Gramaglia, Acxiom’s interim chief executive officer, said, “We achieved overall solid financial performance for the quarter and are pleased with our continued revenue growth, especially in our core U.S. marketing services and products business. During the quarter we increased spending in sales, account management and service delivery to continue our momentum and position Acxiom for strong performance through the balance of the year.”

Key Stats:

Gross margin shrank 1.6 percentage points to 20.6%. The contraction appeared to be driven by increased costs, which rose 9% from the year earlier quarter while revenue rose 6.8%.

Revenue has risen the past four quarters. Revenue increased 3.6% to $298.8 million in the fourth quarter of the last fiscal year. The figure rose 5.4% in the third quarter of the last fiscal year from the year earlier and climbed 7.6% in the second quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 2 cents, and in the third quarter of the last fiscal year, it was ahead by 3 cents.

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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(Source: Xignite Financials)