Acxiom Loss Narrows, Outlook Weak; Stock Down 10%

(RTTNews) - IT services company Acxiom Corp. (ACXM), Thursday reported a fourth-quarter loss that narrowed from a year ago, reflecting the absence of an asset impairment charge recorded last year. Adjusted earnings for the quarter came in ahead of analysts' estimates, while quarterly revenues fell short of expectations.

Moving ahead, the company detailed a weak outlook for the full year 2016, sending its shares down about 10 percent in the after-hours trade.

Little Rock, Arkansas-based fourth-quarter loss narrowed to $5 million or $0.08 per share from $29.2 million or $0.38 per share last year. Last year results included a write-down of goodwill and other long-lived assets associated with European operations of $29 million.

Excluding special items, adjusted earnings for the quarter dropped to $0.24 per share from $0.26 per share a year ago. On average, analysts polled by Thomson Reuters estimate earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the fourth quarter fell 4.2 percent to $257.4 million from $268.8 million last year. Analysts had a consensus revenue estimate of $259.3 million for the quarter.

Segment-wise, marketing and data services revenues dropped 2 percent to $206.0 million, while revenues from IT infrastructure management services declined 12 percent to $52 million.

Looking forward to the full year 2016, the company expects earnings from continuing operations of $0.45 to $0.50 per share on revenues of $815 million to $840 million. Analysts currently expect earnings of $0.90 per share on revenues of $1.05 billion.

Yesterday, Acxiom had announced plans to sell its information-technology infrastructure management operations to two private-equity firms for $190 million.

ACXM closed Thursday's trading at $16.58, down $0.91 or 5.20%, on the Nasdaq. The stock further dropped $1.58 or 9.53% in after-hours trade.