Acxiom's Earnings Upbeat in 1Q - Analyst Blog

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Acxiom Corporation ( ACXM ) reported diluted earnings per share of 17 cents in the fiscal first quarter of 2013 (ending June 30, 2012) compared with 13 cents in the previous-year quarter, beating our Zacks Consensus Estimate of 10 cents.


Total revenue came in at $271.7 million; declined 1.6% from the last year quarter and down 5.4% sequentially, although the revenue in the quarter marginally exceeded the Zacks Consensus Estimate of $270 million.

The Marketing and Data Services segment sales increased slightly by 0.4% year over year to $185.7 million. The company's IT Infrastructure Management segment fell around 3.8% annually to reach $70.3 million. Other Services revenues dropped 12.8% year over year to $15.7 million in the quarter.


Operating margin for the quarter came in at 9.4% versus 7.5% in the previous year quarter and 7.8% in the last quarter.

Marketing and Data Services operating margin was around 9.9% compared to 9.3% in the previous year quarter. The IT Infrastructure Management segment produced an operating margin of 12.6%, rising from 5.8% in the first quarter of fiscal 2012. Other Services operating margin came in at (10.3%) versus (3.1%) in the previous year quarter.

Balance Sheet and Cash Flows

Acxiom ended the quarter with cash and cash equivalents of $179.3 million, declining from $229.6 million at the end of the previous quarter. Net trade accounts receivable came in at $172.5 million, rising from $169.4 million at the end of the fourth quarter of fiscal 2012.

Long-term debt came in at $248.6 million, falling from $251.9 million at the end of the fourth quarter of fiscal 2012. Deferred revenues came in at $52.6 million, falling from $60 million at the end of the previous quarter of fiscal 2012.

The net cash used by operating activities was $1.9 million during the first quarter of fiscal 2013 compared to $32.8 million in the previous year quarter. Capital expenditures incurred came in at $3.5 million versus $12.6 million in the year-ago quarter.

Share Repurchase

In the reported quarter the company repurchased 2.4 million shares worth $33 million. A total of 8.1 million shares was bought back by Acxiom for $100 million since August 2011.


The company expects that the revenue will be down by 5% in the second quarter of fiscal 2013 owing to the low yields in Acxiom's IT Infrastructure Management and Other Services segments.

The company also expects that its revenue from continuing operations will either remain flat or decline marginally during the fiscal 2013. Earnings per share are likely to fall within a range of 60 cents - 65 cents for the full year of fiscal 2013.

ACXIOM CORP (ACXM): Free Stock Analysis Report
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This article appears in: Investing , Business , Earnings , Stocks

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