Post Earnings Coverage as Accenture Tops Market Estimates

LONDON, UK / ACCESSWIRE / June 24, 2016 / ActiveWallSt.com announces its post-earnings coverage on Accenture PLC (NYSE: ACN). The company announced its Q3 FY 2016 financial results on Thursday, June 23, 2016. The consulting company reported solid growth in its top line and bottom line, topping market estimates. The company also provided upbeat earning guidance for Q4 FY16 and FY 2016. Register with us now for your free membership and see our complete earnings coverage on this equity at:

http://www.activewallst.com/register/

Today, ActiveWallSt.com is promoting its earnings coverage on management consulting, technology, and outsourcing services provider ACN. Get all of our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=ACN

Earnings Review

For the period ended on May 31, 2016, Accenture reported net income of $950 million, up 11.76%, as compared to 850 million in the year ago period. The company’s earnings grew 13.7% to $1.41 per share in Q3 FY16 as compared to $1.24 per share in Q3 FY15, against analysts’ estimated earnings of $1.40 per share. For Q3 FY16, the company reported revenue of $8.44 billion, up 8.56%, from $7.77 billion in Q3 FY15. Analysts expected the company to generate $8.34 billion in revenue.

Consulting Business Grows

During Q3 FY16, Accenture reported new bookings of $9.1 billion. The company’s consulting services grew 12% to $4.62 billion, while its outsourcing services revenue came in at $3.81, up 4%, on y-o-y basis. The company stated that 54% of its $9.1 billion in new bookings during Q3 FY16 were for consulting services, while 46% was derived from outsourcing.

Communications, Media & Technology revenues were up 6% to $1.71 billion in Q3 FY16 as compared to the year ago period. Revenues from Health & Public Services and Financial Services increased 11% and 10%, respectively, on y-o-y basis to $1.54 billion and $1.80 billion, respectively. For Q3 FY16, revenues from Products increased 15% to $2.16 billion; however, Resources declined 2% to $1.22 billion as compared to Q3 FY15.

Operating Performance

Accenture reported operating income of $1.31 billion, or 15.5% of net revenue, in Q3 FY16 as compared with $1.13 billion, or 14.6% of revenues, reported in Q3 FY15. Gross margin decreased 60 basis points on y-o-y basis to 31.9%. Combined sales and marketing expenses and general and administrative costs rose 4.3% on y-o-y basis $1.38 billion.

Share Repurchase and Dividend

During Q3FY16, Accenture repurchased for a total of $478 million, bringing the company’s total share repurchases for the first three quarters of FY16 to 18.9 million shares, for a total of $1.97 billion. The company also declared a semi-annual cash dividend of $1.10 per share during the quarter.

Forecast

Accenture also updated its guidance. For Q4 FY16, Accenture expects net revenue in the range of $8.25 billion and $8.50 billion against analysts’ estimation of $8.39 billion. For FY16, Accenture forecasts earnings in the range of $5.29 to $5.33 per share, up from its previous forecast of $5.21 to $5.32. Analysts were expecting earnings of $5.33 per share.

Stock Performance

Accenture’s shares declined marginally on June 23, 2016, closing at $118.91, down by 0.10%. The stock has touched a record high a day earlier. Since the beginning of the year Accenture’s share price has advanced 14.89% as compared to S&P 500 which is up 3.39% during the same time frame.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 441605