Accenture plc (NYSE:ACN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.1%.
Accenture plc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 3.09% to $1 in the quarter versus EPS of $0.97 in the year-earlier quarter.
Revenue: Increased 4% to $7.06 billion from $6.79 billion in the same period one year ago.
Actual vs. Wall St. Expectations: Accenture plc reported adjusted EPS income of $1 per share. By that measure, the company beat the mean analyst estimate of $0.97. It missed the average revenue estimate of $7.07 billion.
Quoting Management: Pierre Nanterme, Accenture’s chairman and CEO, said, “We are pleased with our second-quarter financial results, which were in line with our expectations. We saw very strong demand for our services, with $9.1 billion in new bookings, including record consulting bookings. Our revenue growth was within our guided range for the quarter, including a 10 percent local-currency increase in outsourcing. We also increased operating income and again expanded operating margin, reflecting our continued focus on driving profitable growth.”
Key Stats (on next page)…
Revenue decreased 2% from $7.22 billion in the previous quarter. Adjusted EPS decreased 5.66% from $1.06 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.17 and has not changed. For the current year, the average estimate has moved down from a profit of $4.27 to a profit of $4.26 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)