Acxiom Sees Sharp Decline in Fiscal 1Q Revenue

Interactive marketing consultant Acxiom Corp. on Wednesday said it expects its fiscal first-quarter revenue to fall as much as 21 percent as clients delay or cancel marketing programs.

The forecast falls well below Wall Street expectations, and sent shares tumbling in aftermarket electronic trading.

For the three months ending on Tuesday, the company expects revenue between $245 million and $255 million. Analysts polled by Thomson Reuters, on average, forecast revenue of $282.9 million, with estimates ranging from $280.5 million to $285.2 million.

Acxiom guided for profit between 3 cents and 7 cents per share. Wall Street expects profit of 21 cents per share, with estimates ranging from 19 cents to 23 cents.

"The outlook for revenue in the near term remains challenging," said President and CEO John Meyer. "We continue to feel the effects of market consolidation, as well as clients continuing to defer decisions on their marketing spending or canceling programs, both of which have an effect on our revenue and our ability to estimate revenue."

In aftermarket trading, Acxiom shares lost $1.87, or 16.5 percent, to $9.50, from their close in the regular session at $11.37. The stock has traded between $6.35 and $15.11 in the past 52 weeks and ended regular trading up about 38 percent for the year.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.