Acxiom Increases Share Buyback to $250M
Acxiom Corporation (ACXM) 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), EPAM Systems, Inc. (EPAM) and Infosys Ltd. (INFY). All these stocks carry a Zacks Rank #2 (Buy).
Read the Full Research Report on INFY
Read the Full Research Report on EPAM
Read the Full Research Report on ACXM
Read the Full Research Report on CSGP
Zacks Investment Research
