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Accenture (ACN) to Report Q4 Earnings: What's in Store?
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Accenture plc (ACN - Free Report) is scheduled to report fourth-quarter fiscal 2018 results on Sep 27, before market open.
While the top line is likely to benefit from strength across all the segments, the bottom line is expected to benefit from higher revenues and strong operating performance. Solid bookings are expected to act as another growth catalyst.
So far this year, shares of Accenture have gained 13.8%, outperforming the 9.6% rise of the Zacks S&P 500 Composite Index.
Strength Across Segments to Boost Revenues
Revenues from Communications, Media & Technology segment are likely to be driven by growth across all geographic regions in Software & Platforms and Communications & Media, led by Software & Platforms in North America.The consensus estimate for this segment’s revenues is pegged at $2.05 billion, indicating year-over-year growth of 12.7%. In third-quarter fiscal 2018, segment revenues increased 22% year over year to $2.13 billion.
Financial Services segment revenues are expected to be driven by growth across all industry groups and geographic regions, led by Banking & Capital Markets in Europe and Growth Markets. The consensus mark for this segment’s revenues is pegged at $2.05 billion, indicating year-over-year growth of 4.9%. In third-quarter fiscal 2018, segment revenues increased 15% year over year to $2.14 billion.
Revenues from Health & Public Service segment are likely to be driven by growth in Public Service across all geographic regions. The consensus estimate for this segment’s revenues is pegged at $1.69 billion, indicating year-over-year growth of 4.9%. In third-quarter fiscal 2018, segment revenues increased 10% year over year to $1.70 billion.
Products segment revenues are expected to be driven by growth across all geographic regions in Industrial and Consumer Goods, Retail & Travel Services. The consensus mark for this segment’s revenues is pegged at $2.78 billion, indicating year-over-year growth of 11.6%. In third-quarter fiscal 2018, segment revenues increased 17% year over year to $2.84 billion.
Revenues from Resources segment are likely to be driven by growth across all geographic regions in Chemicals & Natural Resources and Energy, as well as Utilities in Europe. The consensus estimate for this segment’s revenues is pegged at $1.40 billion, indicating year-over-year growth of 11%. In third-quarter fiscal 2018, segment revenues increased 18% year over year to $1.47 billion.
Strength across segments is likely to contribute to year-over-year growth of Accenture’s total revenues, the Zacks Consensus Estimate for which is currently pegged at $9.98 billion, indicating an increase of 9.1% year over year. In third-quarter fiscal 2018, net revenues of $10.3 billion grew 16% year over year.
The Zacks Consensus Estimate for consulting bookings is pegged at $5.74 billion, indicating year-over-year growth of 12.6%. For outsourcing bookings, the consensus mark stands at $5.53 billion, up 10.7% year over year. High demand for digital, cloud and security related services are expected to be key drivers of Accenture’s bookings in the to-be-reported quarter.
In third-quarter fiscal 2018, consulting and outsourcing bookings totaled $5.9 billion and $5.8 billion, respectively.
Earnings Likely to Grow Year Over Year
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $1.55, indicating year-over-year growth of 4.7%. We expect the company to witness bottom-line growth on the back of higher revenues and improvement in operating results, which are likely to be partially offset by higher non-operating expenses.
In the fiscal third quarter, adjusted earnings rose 17.7% from the year-ago quarter to $1.79 per share.
Our Model Doesn’t Suggest a Beat
Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Accenture has an Earnings ESP of +0.41% but a Zacks Rank #4.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Automatic Data Processing (ADP - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of #3. The company is slated to report first-quarter fiscal 2019 results on Oct 31.
Gartner (IT - Free Report) has an Earnings ESP of +4.50% and a Zacks Rank #3. The company is expected to report third-quarter 2018 results on Nov 1.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Accenture (ACN) to Report Q4 Earnings: What's in Store?
Accenture plc (ACN - Free Report) is scheduled to report fourth-quarter fiscal 2018 results on Sep 27, before market open.
While the top line is likely to benefit from strength across all the segments, the bottom line is expected to benefit from higher revenues and strong operating performance. Solid bookings are expected to act as another growth catalyst.
So far this year, shares of Accenture have gained 13.8%, outperforming the 9.6% rise of the Zacks S&P 500 Composite Index.
Strength Across Segments to Boost Revenues
Revenues from Communications, Media & Technology segment are likely to be driven by growth across all geographic regions in Software & Platforms and Communications & Media, led by Software & Platforms in North America.The consensus estimate for this segment’s revenues is pegged at $2.05 billion, indicating year-over-year growth of 12.7%. In third-quarter fiscal 2018, segment revenues increased 22% year over year to $2.13 billion.
Financial Services segment revenues are expected to be driven by growth across all industry groups and geographic regions, led by Banking & Capital Markets in Europe and Growth Markets. The consensus mark for this segment’s revenues is pegged at $2.05 billion, indicating year-over-year growth of 4.9%. In third-quarter fiscal 2018, segment revenues increased 15% year over year to $2.14 billion.
Revenues from Health & Public Service segment are likely to be driven by growth in Public Service across all geographic regions. The consensus estimate for this segment’s revenues is pegged at $1.69 billion, indicating year-over-year growth of 4.9%. In third-quarter fiscal 2018, segment revenues increased 10% year over year to $1.70 billion.
Products segment revenues are expected to be driven by growth across all geographic regions in Industrial and Consumer Goods, Retail & Travel Services. The consensus mark for this segment’s revenues is pegged at $2.78 billion, indicating year-over-year growth of 11.6%. In third-quarter fiscal 2018, segment revenues increased 17% year over year to $2.84 billion.
Revenues from Resources segment are likely to be driven by growth across all geographic regions in Chemicals & Natural Resources and Energy, as well as Utilities in Europe. The consensus estimate for this segment’s revenues is pegged at $1.40 billion, indicating year-over-year growth of 11%. In third-quarter fiscal 2018, segment revenues increased 18% year over year to $1.47 billion.
Strength across segments is likely to contribute to year-over-year growth of Accenture’s total revenues, the Zacks Consensus Estimate for which is currently pegged at $9.98 billion, indicating an increase of 9.1% year over year. In third-quarter fiscal 2018, net revenues of $10.3 billion grew 16% year over year.
Accenture PLC Revenue (TTM)
Accenture PLC Revenue (TTM) | Accenture PLC Quote
Booking Trends Upbeat
The Zacks Consensus Estimate for consulting bookings is pegged at $5.74 billion, indicating year-over-year growth of 12.6%. For outsourcing bookings, the consensus mark stands at $5.53 billion, up 10.7% year over year. High demand for digital, cloud and security related services are expected to be key drivers of Accenture’s bookings in the to-be-reported quarter.
In third-quarter fiscal 2018, consulting and outsourcing bookings totaled $5.9 billion and $5.8 billion, respectively.
Earnings Likely to Grow Year Over Year
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $1.55, indicating year-over-year growth of 4.7%. We expect the company to witness bottom-line growth on the back of higher revenues and improvement in operating results, which are likely to be partially offset by higher non-operating expenses.
In the fiscal third quarter, adjusted earnings rose 17.7% from the year-ago quarter to $1.79 per share.
Our Model Doesn’t Suggest a Beat
Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Accenture has an Earnings ESP of +0.41% but a Zacks Rank #4.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Paychex (PAYX - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #2. The company is slated to report first-quarter fiscal 2019 results on Oct 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Automatic Data Processing (ADP - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of #3. The company is slated to report first-quarter fiscal 2019 results on Oct 31.
Gartner (IT - Free Report) has an Earnings ESP of +4.50% and a Zacks Rank #3. The company is expected to report third-quarter 2018 results on Nov 1.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>