Earnings Surge for Acxiom

Acxiom Corporation (ACXM - Analyst Report) reported Non-GAAP earnings per share of 22 cents in the fourth quarter of fiscal 2012 compared with 21 cents in the previous-year quarter, beating our Zacks Consensus Estimate of 19 cents.

For fiscal 2012, Non-GAAP earnings per share came in at 76 cents compared with 68 cents in fiscal 2011.

Revenues

Total revenue came in at $287.3 million, remaining almost consistent with the last year quarter but rising 2.2% sequentially. This again beat the Zacks Consensus Estimate of $281 million.

The Marketing and Data Services segment sales increased nearly 5.2% annually to $202.9 million. The company’s IT Infrastructure Management segment fell around 9.6% annually to reach $67.6 million. Other revenues dropped 14.3% year over year to $16.8 million during the quarter.

For fiscal 2012, net sales were $1.13 billion, rising 1.5% from fiscal 2011.

Margins

Operating margin (without unusual items) for the quarter came in at 12.1% versus 11.7% in the previous year quarter and 11% in the last quarter.

Marketing and Data Services operating margin was around 14.6% compared to 15.1% in the previous year quarter. The IT Infrastructure Management segment produced an operating margin of 8.7%, rising from 7.4% in the fourth quarter of fiscal 2011. Other Services operating margin came in at (3.8%) versus (5.5%) in the previous year quarter.

For fiscal 2012, operating margin (without unusual items) came in at 10.3% compared to 9.8% in the previous year.

Share Repurchase

Acxiom repurchased 1.6 million shares in the quarter for $23 million. A total of 5.6 million shares were bought back by the company for $66 million in its fiscal year 2012.

Balance Sheet and Cash Flows

Acxiom ended the quarter with cash and cash equivalents of $229.6 million, rising from $146 million at the end of the previous quarter. Net trade accounts receivable came in at $169.4 million, falling marginally from $171 million at the end of the third quarter of fiscal 2012.

Long-term debt came in at $251.9 million, falling from $257 million at the end of the third quarter of fiscal 2012. Deferred revenues came in at $60 million, falling from $70 million at the end of the previous quarter of fiscal 2012.

The company generated net cash from operations of $56.4 million during the fourth quarter of fiscal 2012 compared to $42 million in the previous year quarter. Capital expenditures incurred came in at $12.4 million during the quarter.

Outlook

For fiscal 2013, the company expects to undergo several management and investment changes which would pace up yields substantially. EPS is expected to fall within a range of 55 cents – 65 cents for the full year whereas revenues are projected to be consistent to marginally down compared to fiscal year 2012.