Acxiom Shares Plunged: What You Need to Know (ACXM)

Acxiom Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Acxiom (Nasdaq: ACXM ) dropped 28% in intraday trading today after announcing two key executive departures and guiding EPS down for the current quarter.

So what: Acxiom's CEO resigned effective next Monday, and its CFO announced plans to leave in the second quarter. The company announced it expects non-GAAP EPS of $0.18 to $0.22 for the March-ended quarter, compared to a consensus estimate of $0.24, and GAAP EPS of -$0.49 to -$1.03.

Now what: Acxiom plans a $50 million to $90 million asset writedown this quarter due to poor performance in its international operations. Such writedowns are required if management determines an asset will not generate the profits it once hoped for, suggesting Acxiom's outlook has deteriorated. Furthermore, the departure of a CEO or CFO for reasons other than retirement or a promotion is always worrisome -- particularly when it is sudden.

Interested in more info on Acxiom? Add it to your watchlist by clicking here.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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