Acxiom reported lackluster second quarter fiscal 2015 results as
adjusted earnings beat the Zacks Consensus Estimate by $0.01. High
operating expenses and restructuring costs continue to be a drag on
the profitability of the company. Acxiom also operates in a
competitive landscape that is becoming more complex with low
barriers to entry, adding to its operating risks. However, the
company is focusing on its core businesses across key regions for
augmenting long-term margins. Acxiom also expects to improve
top-line growth through the acquisition of LiveRamp while
continuing to invest in product enhancements and connectivity. We
are changing our recommendation for the stock from Underperform to
Neutral as we anticipate it perform in line with the broader
Founded in 1969, Acxiom Corporation is headquartered in Little
Rock, Arkansas, with locations throughout the United States,
Europe, South America, Asia-Pacific and the Middle East. The
company provides consumer data and analytics, information
technology, data integration, and consulting solutions. Its
products and services enable clients to use information to improve
their business decision-making processes and manage customer
relationships. The company's solutions include Customer Data
Integration (CDI) technology, database services, information
technology (IT) outsourcing, consulting and analytics, as well as
Acxiom has a customer base that includes firms in the financial
services, insurance, information services, and direct marketing,
publishing, retail, consumer packaged goods, technology,
automotive, healthcare, travel and telecommunications
The company reports financial results for two business segments
Marketing and Data Services and IT Infrastructure Management.
Marketing and Data Services segment provide solutions to
marketing heads for achieving higher and more stable goals. These
solutions include data sourcing, data analytics, creation and
management of customer marketing databases and a variety of other
IT Infrastructure Management segment comprises of solutions such
as mainframe, server hosting and cloud computing.
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