Thursday, May 13, 2010

Acxiom down a percent despite beating revenue and earnings expectations (ACXM)

Shares of "interactive marketing" firm Acxiom (ACXM) are down a little bit this morning.  The conference call wrapped up earlier.  Shares are up 117% from our purchase price last June, nearly four times the comparable rise in the Nasdaq.

The company reported earnings per share of 21cents, versus the 17cent Wall Street estimate, and revenues of $288million came in ahead of the $282million expected.

As expected, depreciation & amortization expenses are slowing, resulting in less cash flow being "hidden" from GAAP eps.

As my strategy is to buy "great companies at good prices and good companies at great prices," I may sell ACXM in the near future, as they have moved closer to being a "good company at a good price, rather than a great price."  Back at a 25% Free Cash Flow Yield(FCFY), the shares were a steal - as this yield settles at less than half that amount, not so much.  This becomes a long-term capital gain is a little over a month, I'll probably sell then.

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