Acxiom Reports Mixed 3Q - Analyst Blog
31 Januar 2013 - 12:10PM
Zacks
Acxiom Corporation
(ACXM) reported earnings per share of 19 cents in the third quarter
of 2013 (ended Dec 30, 2012) compared with 10 cents in the year-ago
quarter. The quarterly earnings were well ahead of the Zacks
Consensus Estimate by 18.8%. Excluding one-time items, EPS
decreased 14% to 19 cents in the reported quarter.
Revenues
Total revenue came in at $273
million, down 3.0% year over year and missing the Zacks Consensus
Estimate of $278 million.
The Marketing and Data Services
segment sales edged up 1.4% year over year to $190.1 million. The
increase in revenues in this segment was driven by increase in U.S.
revenue (up 4% to $160 million) offset by lower international
revenues.
The company’s IT Infrastructure
Management segment fell around 9.0% annually to reach $70
million.
Other Services revenues dropped
nearly 19.7% year over year to $13 million in the reported
quarter.
Margins
Operating margin for the quarter
came in at 9.8% versus 5.5% in the year-ago quarter. The annual
rise in margin was driven by the company’s IT infrastructure
management segment.
Marketing and Data Services
operating margin was 10% compared to 11.0% in the previous-year
quarter. The IT Infrastructure Management segment reported an
operating margin of 14.0%, up from 13.0% in the year-ago quarter.
Other Services operating margin came in at (6.3%) versus (3.3%) in
the previous-year quarter.
Balance Sheet and Cash
Flows
Acxiom ended Dec 31, 2012 with cash
and cash equivalents of $186.2 million, down from $229.6 million at
the end of Mar 31, 2012. Net trade accounts receivable came in at
$182.4 million, up from $169.4 million at the end of Mar 31,
2012.
Long-term debt came in at $240.7
million as on Dec 31, 2012, down from $251.8 million at the end of
Mar 31, 2012.
The net cash provided by operating
activities was $38.5 million during the third quarter of 2013
compared to $82.5 million in the prior year period. The decline in
operating cash flow was attributable to higher working capital and
increased tax payments.
Share
Repurchase
In the reported quarter, the
company repurchased 1 million shares for $18.3 million. A total of
9.9 million shares were bought back by Acxiom for $131 million
since Aug 2011.
Outlook
Concurrent with the earnings
release, management provided its guidance for fiscal 2013. For
fiscal 2013, management expects revenues to be down approximately
2.5% annually. The decline is due to a decrease in IT
infrastructure management and international operations. The company
expects earnings per share to be 73 cents for full year 2013
compared to the prior guidance of 70 cents.
Revenues from top 100 customers,
representing over 80% of all US marketing and data service revenues
were up over 9% year-to-date. Going forward, the company intends to
focus more on expanding its client base and cater to the needs of
small and mid-tier customers with the release of new products.
However, the company faces intense competition from industry
bigwigs, which include formidable names such as
Harte-Hanks (HHS) and Amdocs
Limited (DOX).
Acxiom currently has a Zacks Rank
#3 (Hold). One of its competitors, Unisys
Corporation (UIS) carries a Zacks Rank #2 (Buy).
ACXIOM CORP (ACXM): Free Stock Analysis Report
AMDOCS LTD (DOX): Free Stock Analysis Report
HARTE-HANKS INC (HHS): Free Stock Analysis Report
UNISYS (UIS): Free Stock Analysis Report
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