Acxiom reports 3Q loss of $1.4M

Outcome misses analysts’ forecast

Graph showing the 3rd quarter earnings of Acxiom Corp.
Graph showing the 3rd quarter earnings of Acxiom Corp.

Acxiom Corp. recorded a loss of $1.4 million for its fiscal 2016 third quarter, missing analysts' estimates.

The Little Rock company reported a loss of 2 cents per share for the quarter, compared with a profit of 5 cents per share during the same quarter a year ago. Analysts expected the company to post earnings per share of 12 cents.

Acxiom reported revenue of $221.1 million for the quarter that ended Dec. 31, compared with $208.2 million a year ago.

The company said that excluding a currency impact of about $2 million, revenue was up 7 percent.

"We are pleased to report a solid quarter highlighted by new customer additions and revenue growth across all of our divisions," said Acxiom Chief Executive Officer Scott Howe in a prepared statement.

"Our divisional structure is beginning to pay dividends, and the investments we are making against our long-term strategy continue to build the foundation for sustainable future growth," he said.

Acxiom shares fell 0.6 percent on Thursday to close at $18.20 on the Nasdaq stock market. The company released its financial results after markets closed.

Acxiom also revised revenue projections for the whole of fiscal 2016.

The company estimates it will report revenue from continuing operations between $835 million and $840 million.

Previously, the company expected to bring in between $815 million and $840 million.

Acxiom is a data broker that gathers consumer information from public records, shopping habits and clients to help its customers develop targeted marketing campaigns.

During the first quarter of fiscal 2016, Acxiom said the company "realigned its organizational structure to better reflect its business strategy." Those segments are marketing services, audience solutions and connectivity.

In the marketing services segment, operating income was down 7 percent; income in audience solutions was up 6 percent; and connectivity had a loss of about $1 million.

Some of those segments performed well in the quarter while others did "really poorly," said said Bob Williams, senior vice president and managing director of Simmons First Investment Group Inc. in Little Rock.

"Acxiom is in the middle of a transition," he said. "From a traditional computer data company to trying to get themselves where they are in a subscription base model."

Acxiom said Thursday that the company added 20 customers to its connectivity segment during the third quarter.

The company said it has also expanded its TV offering through its acquisition of the Audience Interconnect data platform from Allant Group.

The acquisition allows Acxiom's partners to reach targeted U.S. households via data-driven ad campaigns, according to the news release.

Acxiom bought back 463,000 shares for about $10 million during the third quarter. Since the start of the share repurchase program in 2011, the company has bought back 14.8 million shares for $240 million.

Business on 02/05/2016

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