- Accenture’s 2Q adjusted EPS surpassed estimates with $2.77 compared to the $2.69 from last year, beating the estimate of $2.65.
- The EPS stands at $2.63, an increase from $2.39 last year.
- Revenue was reported at $15.80 billion, slightly less than the $15.81 billion from last year and also slightly below the estimate of $15.82 billion.
- Communications, Media & Technology revenue was reported at $2.65 billion, a decrease of 8% from last year, but higher than the estimated $2.58 billion.
- Financial Services revenue was $2.81 billion, a decrease of 6.5% from last year, and lower than the estimated $2.98 billion.
- Product revenue increased by 0.9% from last year to $4.76 billion, slightly less than the estimated $4.78 billion.
- Health & Public Service revenue increased by 10% from last year to $3.33 billion, higher than the estimated $3.27 billion.
- Resources revenue increased by 2.6% from last year to $2.24 billion, slightly less than the estimated $2.27 billion.
- Operating cash flow decreased by 9.8% from last year to $2.10 billion, lower than the estimated $2.75 billion.
- Operating margin stands at 13%, an increase from 12.3% last year.
- Accenture expects revenues for the third quarter of fiscal 2024 to be in the range of $16.25 billion to $16.85 billion, reflecting an approximately negative 1% foreign-exchange impact compared with the third quarter of fiscal 2023.
- The company now expects revenue growth for fiscal 2024 to be in the range of 1% to 3% in local currency, a decrease from the previously estimated 2% to 5%.
- For fiscal 2024, the company continues to expect operating cash flow to be in the range of $9.3 billion to $9.9 billion, property and equipment additions to be $600 million, and free cash flow to be in the range of $8.7 billion to $9.3 billion.
- The company has received 21 buys, 8 holds, and 1 sell recommendations.
Accenture Plc Cl A on Smartkarma
The independent investment research network Smartkarma has recently seen a surge in analyst coverage on Accenture Plc Cl A. According to the research reports published by analysts such as Baptista Research, Accenture has exceeded analyst expectations in terms of revenue and earnings. The company’s bookings have also reflected a 12% growth in local currency, showcasing its ability to transform global market dynamics. Despite challenges in discretionary spending, Accenture has continued to expand its market share, with Q1 revenues reaching $16.2 billion. In this report, Baptista Research has conducted a fundamental analysis of the company’s historical financial statements.
In another report published by Baptista Research on Smartkarma, Accenture’s latest investments in AI have been highlighted. The company’s most recent results have been a mixed bag, with revenues falling short of Wall Street expectations but earnings performing above par. However, Accenture’s roster of 300 Diamond clients demonstrates the trust these clients have in the company’s extensive capabilities. With a focus on cloud migration, modern ERP, data and AI, as well as the emerging Gen AI space, Accenture is well-positioned to capitalize on market opportunities.
A look at Accenture Plc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Accenture Plc Cl A has a positive long-term outlook. The company has received high scores in resilience and momentum, indicating its ability to withstand challenges and maintain a strong performance. With a score of 4 in both categories, this suggests that Accenture is well-positioned to adapt to changing market conditions and continue its growth.
While the company received lower scores in value and dividend, with a score of 2 and 3 respectively, it still received a score of 3 in growth. This suggests that while the company may not be undervalued, it still has potential for growth in the future. Overall, Accenture’s strong performance in resilience and momentum, along with its specialized capabilities and global reach, make it a promising company for long-term investment.
Accenture PLC provides management and technology consulting services and solutions. The company has a wide network of businesses that offer consulting, technology, outsourcing, and alliances to clients across all industries worldwide. With its high scores in resilience and momentum, Accenture is well-equipped to navigate the ever-changing business landscape and continue to deliver strong results for its clients. Its focus on specialized capabilities also positions it for potential growth in the future. Overall, Accenture is a solid choice for investors looking for a company with a positive long-term outlook.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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