Acxiom (ACXM) to Report Q1 Earnings: Is a Beat in Store?

Acxiom CorporationACXM is scheduled to release first-quarter fiscal 2019 results on Aug 9.

The company has recorded an impressive streak of positive earnings surprises. In fact, Acxiom surpassed the Zacks Consensus Estimate in the trailing three quarters, delivering an average positive earnings surprise of 36.95%.

Notably, the company's stock has gained 73.2% in the past year, substantially outperforming the 35.8% rally of the industry it belongs to.

The outperformance can be primarily attributed to the company's initiatives to enhance LiveRamp platform. Further, the recent divestiture of Acxiom Marketing Solutions ("AMS") business to Interpublic Group IPG has kept the investors optimistic.

Fourth-Quarter Performance

In fourth-quarter 2018, Acxiom delivered non-GAAP earnings of 27 cents per share, beating the Zacks Consensus Estimate by 7 cents. The figure soared 80% from the year-ago quarter.

Revenues were $244.8 million, up 8.9% from the year-ago quarter marginally ahead of the Zacks Consensus Estimate of $245 million.

Notably, LiveRamp revenues in the fourth quarter of fiscal 2018 came in at $60 million, surging 32% from the year-ago quarter. AMS generated revenues of $185 million, inching up 3% year over year.

What to Expect?

Acxiom forecasts first-quarter revenues to be 23% of fiscal 2019 revenues. For fiscal 2019, revenues are expected to come in the range of $935-$955 million (mid-point of $945 million), up 3.1% over fiscal 2018, considering the mid-point of the range.

Additionally, the Zacks Consensus Estimate for revenues is around $219.6 million, up approximately 3.4% from the year-ago quarter.

Moreover, the Zacks Consensus Estimate for earnings is pegged at 18 cents per share, representing year-over-year growth of 28.6%.

Factors Likely to Influence Q1 Performance

Initiatives to Enhance Marketing

Acxiom has been taking many strategic steps of late to position it better in the omni-channel marketing space. Recently, the company introduced Global Data Navigator tool for international and U.S. marketers, to empower them with visibility into global audiences.

The company partnered GSTV to deliver people-based measurement to advertisers in order toaid them quantify the impact of video advertising and realize business goals.

The company also declared expansion of Acxiom global data coverage into Brazil, Italy, and Netherlands. We expect that these initiatives will significantly expand the company's customer base.

Focus on Strengthening LiveRamp

Acxiom continues to strengthen its LiveRamp offering. This is aiding the platform gain rapid adoption. In the quarter under review, LiveRamp announced data scoring initiative with Lucid, to empower more educated data-driven buying decisions.

LiveRamp's identity resolution service, IdentityLink, was leveraged by Microsoft's MSFT Bing Ads Custom Audiences to enhance its people-based search capabilities. Recently, LiveRamp entered into a partnership with ADARA. The partnership is aimed at enhancing experience ofthe digital as well as travel marketers and other media groups with greater visibility in the customers'journeyplanning.

We believe momentum gained by LiveRamp and partnerships to enhance marketing experience will benefit the first-quarter results.

Favorable ESP

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP .

The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Acxiom has a Zacks Rank #3 and an Earnings ESP of +11.11%, which makes us reasonably confident of an earnings beat.

Acxiom Corporation Price and EPS Surprise

Acxiom Corporation Price and EPS Surprise | Acxiom Corporation Quote

Another Stock That Warrants a Look

CONVERGEONE HLD CVON is a stock in the same sector worth considering as our model shows that it too has the right combination of elements to deliver an earnings beat in the upcoming release.

CONVERGEONE has an Earnings ESP of +9.47% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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