Acxiom (ACXM) to Report Q3 Earnings: What Lies in Store?

Acxiom CorporationACXM is set to release third-quarter fiscal 2017 earnings on Jan 31. In the last quarter, the company reported a positive earnings surprise of 100.00%. We note that the company delivered positive earnings surprises in each of the last four quarters, at an average surprise of 123.33%.

Shares of Acxiom have underperformed the broader Zacks Computer IT Services industry over the last one year. While the industry was up 87.2%, the stock gained 46.8%.

Let's see how things are shaping up for this announcement.

Factors to Consider

Acxiom is a formidable player in the field of marketing services and technology. The company has been taking many strategic steps of late to position itself better in the omnichannel marketing space.

The recent launch of the company's Acxiom Audience Cloud to enable marketers better zero in on their targeted audience is expected to help the company gain more traction in the cloud-based marketing space and bodes well for its quarterly results.

Also, recently the company announced a partnership with Verve, a leading player in the location-powered mobile marketing space so as to enable marketers and agencies reach out to consumers in a more targeted manner by gaining insights as well as making advertisements more relevant by determining the location of the mobile devices. (Read More: Acxiom Teams Up with Verve to Boost Mobile-based Marketing ).

While such developments are expected to position the company better in the mobile marketing space, they are also expected to have a positive impact on the company's bottom line in the soon-to-be reported quarter

During Dec 2016, Acxiom owned LiveRamp announced the completion of its acquisition of Arbor (a marketplace for people-based data) and Circulate (a platform that enables app developers to make money out of their first-party data while maintaining privacy). Notably, LiveRamp had inked the deals in Nov 2016 for $140 million. (Read More: Acxiom's LiveRamp Completes Buyouts of Arbor & Circulate ).

The Arbor and Circulate deals will not only help LiveRamp to further strengthen its leadership position in identity resolution but will also drive growth for the company. It is expected to add value to Acxiom's shareholders and favorably impact the company's earnings in the yet-to-be reported quarter.

However, a competitive landscape with low barriers to entry, strength in the U.S. dollar and a soft macroeconomic condition worldwide remain concerns for the company that could adversely affect its earnings.

Earnings Whispers?

Our proven model does not conclusively show that Acxiom is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.

Zacks ESP: Acxiom's Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 6 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Acxiom carries a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Acxiom Corporation Price and EPS Surprise

Acxiom Corporation Price and EPS Surprise | Acxiom Corporation Quote

Stocks to Consider

Here are some companies that, as per our model, that have the right combination of elements to post an earnings beat this quarter:

Applied Optoelectronics Inc. AAOI with an Earnings ESP of +15.87% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

STMicroelectronics N.V. STM with an Earnings ESP of +13.33% and a Zacks Rank #1.

Oclaro, Inc. OCLR with an Earnings ESP of +10.53% and a Zacks Rank #2.

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Acxiom Corporation (ACXM): Free Stock Analysis Report

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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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