Stock Monitor: Computer Task Group Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 05, 2018 / Active-Investors.com has just released a free earnings report on Acxiom Corp. (NASDAQ: ACXM). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ACXM. The Company reported its financial results for the third quarter of the fiscal year 2018, ended December 31, 2017. The Company demonstrated a strong performance in Q3 FY18, mainly due to the record-breaking results of its Connectivity segment. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Acxiom most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the third quarter of the fiscal year 2018, Acxiom's total revenues reached $234.87 million, up 5.18% from $223.31 million in Q3 FY17. The Company's revenues increased 5% y-o-y in Q3 FY18, barring the impact of divestitures, impact from the Australia transition, and a foreign exchange effect. In the reported quarter, Acxiom's international revenues grew 11%, while its US revenues grew 5%. The Company's revenue numbers were lower than analysts' estimates of $239 million.

During Q3 FY18, Acxiom's cost of revenue was $115.92 million, a decrease of 0.47% y-o-y. The Company's gross profit advanced 11.33% to $118.95 million in Q3 FY18 compared to $106.84 million in Q3 FY17. The Company's gross margin was 50.6% in the reported quarter, an increment of 2.8% from the year ago same quarter.

Acxiom's operating expenses were $107.89 million in Q3 FY18, 10.4% higher than $97.73 million in the comparable period in 2017. The Company's income from operations was $11.06 million in Q3 FY18 compared to $9.12 million in Q3 FY17, reflecting an increase of 21.32%. Acxiom's operating margin was 4.7% in the quarter under review compared to 4.1% in Q3 FY17.

Acxiom generated net earnings of $22.94 million in Q3 FY18 compared to $1.07 million in Q3 FY17. The Company's diluted earnings per share (EPS) was $0.28 in the reported quarter, which was around 28 times the diluted EPS of $0.01 in the year earlier corresponding quarter. The results included a GAAP tax benefit of $0.28 and a non-GAAP tax benefit of $0.04, associated with the recent tax reform legislation. Acxiom's diluted EPS, after adjusting for non-recurring items, were $0.31 in Q3 FY18, an increase of 29.17% from $0.24 in Q3 FY17. The Company's adjusted diluted EPS were higher than analysts' consensus estimates of $0.24.

Segment Details

During Q3 FY18, Acxiom's Marketing Services segment's net revenues fell 6.64% to $94.46 million y-o-y, owing to a decrease in both international and US revenues. The segment earned a gross profit of $35.80 million in the reported quarter, a decrease of 4.52% compared to $37.49 million in the year ago same quarter. The segment's income from operations in Q3 FY18 was $22.06 million, 4.43% higher than $21.13 million in Q3 FY17. The segment's operating margin improved 2.5% to 23.4% in Q3 FY18.

For Q3 FY18, Acxiom's Audience Solutions segment's net revenues advanced 1.24% to $84.44 million on a y-o-y basis. The segment's gross profit was $52.82 million in the reported quarter versus $53.12 million in the year ago comparable quarter. In Q3 FY18, the segment's operating income shrank 4.22% to $33.11 million from $34.57 million in Q3 FY17. The segment's operating margin declined 2.3% to 39.2% in Q3 FY18.

During Q3 FY18, Acxiom's Connectivity segment's net revenues surged 44.51% to $55.98 million on a y-o-y basis. The segment attained record levels in gross profit and operating margin in Q3 FY18. The Connectivity segment generated a gross profit of $37.91 million in the reported quarter, up 64.2% from $23.1 million in the year ago corresponding quarter. The segment generated an operating profit of $6.81 million in Q3 FY18 compared to $1.88 million in Q3 FY17, reflecting an increase of 262.71%. The segment's operating margin was 12.2% in the third quarter of the fiscal year 2018, up 7.4% from 4.8% in Q3 FY17.

Cash Matters

Acxiom had cash and cash equivalents of $177.81 million as on December 31, 2017, 4.38% higher than $170.34 million as on March 31, 2017. For the three months ended December 31, 2017, the Company's net cash flow from operating activities was $43.63 million, a decrease of 10.84% from $48.93 million in the same period of last year. The Company had free cash flow to equity of $27.23 million at the end of Q3 FY17, mostly flat from $27.82 million at the end of Q3 FY17.

Acxiom had a long-term debt of $227.94 million as on December 31, 2017, up 20.45% from $189.24 million as on March 31, 2017. In the reported quarter, the Company repurchased 729,000 shares for approximately $20 million.

Acxiom's total capital expenditure was $16 million in Q3 FY18, up 21% from $13 million in Q3 FY17.

Outlook

For the full fiscal year 2018, Acxiom expects revenues to be in the range of $910 million - $915 million, an increase of 6% y-o-y, after adjusting for the Acxiom Impact divestiture. This is lower than the Company's previous guidance of $920 million - $930 million, mainly due to a lower expected revenue from the Audience Solutions segment. The Company expects its GAAP diluted EPS to be between $0.19 and $0.23, which includes an assumed tax reform benefit of approximately $0.28. The non-GAAP diluted EPS is expected to be in the band of $0.85 - $0.89, which represents an increase of 20% to 25% y-o-y, and includes an assumed tax reform benefit of $0.04 to $0.05 per share.

Stock Performance Snapshot

March 02, 2018 - At Friday's closing bell, Acxiom's stock rose 2.62%, ending the trading session at $28.22.

Volume traded for the day: 401.22 thousand shares.

Stock performance in the last month ? up 4.25%; previous three-month period ? up 3.79%; past six-month period ? up 22.59%; and year-to-date ? up 2.39%

After last Friday's close, Acxiom's market cap was at $2.23 billion.

The stock is part of the Technology sector, categorized under the Information Technology Services industry. This sector was up 1.0% at the end of the session.

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