Acxiom Beats on Earnings by a Whisker - Analyst Blog
16 May 2013 - 6:50PM
Zacks
Information technology services
provider Acxiom Corporation (ACXM) reported
fourth-quarter fiscal 2013 net income of $13.2 million or 18 cents
per share compared with $46.1 million or 58 cents in the year-ago
quarter. The year-over-year decrease was primarily due to
significant earnings from discontinued operations in fourth quarter
fiscal 2012. Excluding one-time items, earnings for the reported
quarter were 19 cents per share compared with 22 cents in the
year-earlier quarter. The adjusted earnings marginally beat the
Zacks Consensus Estimate by a penny.
For fiscal 2013, Acxiom reported net income of $57.6 million or 75
cents per share compared with $77.3 million or 96 cents in fiscal
2012. Excluding one-time items, earnings for the reported fiscal
were 76 cents per share compared to 72 cents in the previous
fiscal.
Revenues
Total revenue for fourth quarter fiscal 2013 came in at $277.1
million, down 3.5% year over year and missing the Zacks Consensus
Estimate of $287 million. For fiscal 2013, total revenue was
$1,099.4 million compared with $1,130.6 million in the prior
fiscal, representing a 2.8% year-over-year decrease.
By segments, the Marketing and Data Services
segment sales declined 2.9% year over year to $197.5 million in
fourth quarter fiscal 2013. IT Infrastructure
Management segment revenues dipped 3.5% in the reported
quarter to $65.2 million. Revenues from Other
Services segment dropped 11.0% year over year to $14.5
million in the reported quarter.
Margins
Operating margin for the reported quarter came in at 7.3% versus
7.8% in the year-ago quarter due to lower margins from IT
Infrastructure Management and Marketing and Data Services
segments.
Marketing and Data Services operating margin was 11% compared to
15% in the previous-year quarter. The IT Infrastructure Management
segment reported an operating margin of 4%, down from 9% in the
year-ago quarter.
Balance Sheet and Cash Flows
Acxiom ended fiscal 2013 with cash and cash equivalents of $223.0
million, down from $229.6 million at the end of Mar 31, 2012.
Long-term debt came in at $237.4 million, down from $251.9 million
in fiscal-end 2012.
Net cash provided by operating activities aggregated $74.2 million
during the reported quarter compared to $56.4 million in the
prior-year period. Free cash flow to equity decreased to $42
million for fourth quarter fiscal 2013, compared with $103 million
for the comparable period in the previous fiscal.
Share Repurchase
In the reported quarter, Acxiom repurchased 0.5 million shares for
$9 million. Since Aug 2011, the company has repurchased 10.4
million shares for $140 million. Acxiom’s total share repurchase
authorization is $200 million.
Outlook
Concurrent with the earnings release, management provided its
guidance for fiscal 2014. For fiscal 2014, management expects both
revenues and earnings to remain flat annually. Management is of the
opinion that fiscal 2013 was a transition period for the company,
wherein it invested considerably for new product innovation and
strengthening its client base. Acxiom expects to continue with
these initiatives in fiscal 2014, thereby reaping synergistic
benefits in the future.
Acxiom currently has a Zacks Rank #3 (Hold). Other stocks in the
industry worth reckoning include Unisys
Corporation (UIS), carrying a Zacks Rank #1 (Strong Buy),
while LifeLock, Inc. (LOCK) and McGraw
Hill Financial, Inc. Com (MHFI) carry a Zacks Rank #2
(Buy).
ACXIOM CORP (ACXM): Free Stock Analysis Report
LIFELOCK INC (LOCK): Free Stock Analysis Report
MCGRAW HILL FIN (MHFI): Free Stock Analysis Report
UNISYS (UIS): Free Stock Analysis Report
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