Acxiom Corporation (ACXM - Free Report) recently announced that it has expanded its share repurchase authorization program by $50 million to $250 million. The program is valid for the next 12 months, but may be discontinued at any time.
This information technology company has repurchased 12 million shares worth $179 million, since the program began in Aug 2011. The repurchased shares represent approximately 14.6% of the company’s outstanding shares.
During the second quarter of fiscal 2014, Acxiom repurchased approximately 0.9 million shares for $22.7 million.
The increased share repurchase authorization program by the company is aimed to boost shareholders’ wealth.
On Nov 7, 2013, Acxiom reported its second-quarter fiscal 2014 results, wherein its adjusted earnings of 20 cents per share missed the Zacks Consensus Estimate by a penny. Net income decreased around 40% to $9.8 million or 13 cents per share, due to rising operating costs.
Moreover, the company’s top-line dropped 0.4% year over year to $276.3 million, owing to dismal performances in two out of three segments. The Infrastructure Management Services segment’s revenues fell 4.7% to $66.8 million, while revenues from the Other Services segment decreased 3.4% year over year to $8.5 million. Acxiom reported cash and cash equivalents of $216.6 million for the quarter ended Sep 2013.
Acxiom has been using share repurchases as a tool to reward its shareholders in recent years. The company last paid a quarterly dividend of 6 cents on Aug 19, 2008.
Acxiom currently has a Zacks Rank #4 (Sell). However, stocks with a favorable Zacks Rank in the industry include CoStar Group Inc. (CSGP - Free Report) , EPAM Systems, Inc. (EPAM - Free Report) and Infosys Ltd. (INFY - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).