Data services provider Acxiom Corp. of Conway said Monday that it would expand its share repurchase program by $100 million to $500 million and extend it through Dec. 31, 2019.
“Acxiom has a long track record of returning value to shareholders,” Acxiom CFO Warren Jenson said in a news release. “We are pleased to expand our share repurchase program, as it reflects our continued confidence in the strength of our business and growth outlook.”
Acxiom began the program in August 2011 and has since bought back 20.4 million shares for about $380 million. That total includes 2 million shares it purchased for about $55 million since Dec. 31, 2017. That leaves about $120 million left for future purchases of common stock under the authorization.
The board of directors’ vote to expand the program was announced just days after the company’s stock price fell nearly 20 percent after Facebook said it would stop offering data provided by Acxiom and other third-party companies to advertisers who have used such data to create ads targeted at the social media site’s users.
In a statement last week, Acxiom said Facebook’s decision will hit both revenue and profitability at Acxiom by as much as $25 million in fiscal 2019. The company is scheduled to report fourth-quarter and fiscal 2018 results in May.
Asked Monday whether expanding the repurchase program was related to decline in Acxiom’s stock price, the company referred Arkansas Business to its news release.
Shares of Acxiom (Nasdaq: ACXM) were trading at about $22.68 at around 11:30 a.m. A week ago, it was trading at about $31.
(Correction: A previous version of this article said Acxiom was expecting a loss for fiscal year 2018. But Acxiom revised previous guidance, and thanks to a benefit from federal tax reform, now expects to report diluted earnings per share of between 19 cents and 23 cents.)
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