Accenture Earnings: Here’s Why the Stock is Down Now

Accenture plc (NYSE:ACN) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.46 percent.

Accenture plc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.77 percent to $1.01 in the quarter versus EPS of $0.88 in the year-earlier quarter.

Revenue: Net revenue a year ago was $6.84 billion. Quarterly net revenue increased 4 percent from a year ago.

Actual vs. Wall St. Expectations: Accenture plc reported adjusted EPS income of $1.01 per share. By that measure, the company met the mean analyst estimate of $1.01. It beat the average revenue estimate of $6.9 billion.

Quoting Management: Pierre Nanterme, Accenture’s chairman and CEO, said, “We are pleased with our financial results for the fourth quarter and full-year fiscal 2013. Quarterly revenues were above our guided range, and we are particularly pleased with double-digit revenue growth in our Health & Public Service operating group, as well as improved performance in both Resources and Communications, Media & Technology. For the full fiscal year we once again increased market share, delivered record new bookings, achieved double-digit EPS growth, expanded operating margin and generated strong free cash flow. These results demonstrate our continued ability to manage our business with discipline while driving a strong return to our shareholders in a volatile and fast-changing market environment.

Key Stats (on next page)…

Net revenue in the previous quarter was $7.20 billion.  Sequentially, net revenue was down ~2 percent. EPS decreased 11.4 percent from $1.14 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.13 to a profit $1.12. The average estimate has moved down from a profit of $4.23 to a profit of $4.21 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)