BMO Capital Raises Price Target on Acxiom (ACXM) as New Strategy Drives 3Q Beat

BMO Capital reiterated a Market Perform rating on Acxiom (NASDAQ: ACXM), and raised the price target to $23.00 (from $22.00), following the company's 3Q earnings report. ACXM reported non-GAAP EPS of $0.18, ahead of the Street’s $0.12 estimate. Revenue was $221.2MM, ahead of the Street’s $214.2MM. While Connectivity showed promise once again, it was Marketing Services and Audience Solutions that provided the upside to estimates.

Analyst Daniel Salmon commented, "ACXM reported F3Q16 non-GAAP EPS of $0.18 (which included a $0.02 tax benefit) vs. our and the Street’s $0.12 estimates. Revenue was $221.2MM, ahead of our $214.1MM estimate and the Street’s $214.2MM. Adjusted EBITDA came in at $39.2MM, ahead of our $36.6MM estimate and the Street’s $34.2MM. F2016 revenue guidance was increased to $835-$840MM versus Acxiom’s prior $815-840MM guidance. Management now expects FY2016 EPS to be as much as$0.54, compared to their prior $0.45 to $0.50 guidance. The company has officially begun reporting in three separate segments (Marketing Services, Audience Solutions, and Connectivity) and now discloses gross profit and operating income for each of them."

For an analyst ratings summary and ratings history on Acxiom click here. For more ratings news on Acxiom click here.

Shares of Acxiom closed at $18.20 yesterday.

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