Categories AlphaGraphs, Earnings, Technology

Earnings Preview: Accenture Q2 top-line might gain on segment growth

Accenture (NYSE: ACN) is scheduled to post its second-quarter fiscal 2019 financial results before the opening bell on Thursday, March 28, 2019.

While the consulting industry has gained 10.4% over the past year, Accenture stock has moved 8.2%. Zacks Consensus Estimate puts the second-quarter revenue at about $10.3 billion, an expected 7.3%.

This indicates that the Accenture top-line could gain, especially from the major chunk of its segments.

However, given that growing non-operating expenses have come to bite Accenture in the past, it could also be the case this time around. The bottom-line is expected to be hit due to this.

With segments such as Communications, Media & Tech; Health & Public Service; Products; and Resources, the net revenue in the previously reported first-quarter grew 7% to hit $10.6 billion.

Communications, Media & Tech is expected to contribute at least $2 billion this time around, with robust growth in software and platforms globally.

With a banking slump along with the crisis in European capital markets, Financial Services revenue is expected to decline this time around.

Robust performance in consumer goods, retail and travel services and its industrial arm in developing markets might push the top-line up for the Products segment as well.

However, as mentioned earlier, earnings is expected to decline. Zacks analysts estimate $1.57 in earnings per share for the quarter.

LOOKING BACK

Back in January, Accenture’s then Chairman and Chief Executive Officer Pierre Nanterme resigned due to medical reasons. Former CFO David Rowland became the interim CEO, while Nanterme was said to continue at Accenture as an advisor to CEO.

Accenture CEO Pierre Nanterme resigns
Pierre Nanterme, Advisor to CEO               Image Courtesy: Accenture

Nanterme had served 36 years in Accenture, became the CEO of the company in early 2011 and Chairman in February 2013.

In July 2016, Nanterme announced he underwent surgery after being diagnosed with colon cancer and is moving to the next phase of the treatment.

A month before the CEO change, Accenture had reported its first-quarter results, where it topped market estimates on both revenue and earnings.

Then, Accenture said it expected second-quarter revenues to be in the range of $10.10 billion to $10.40 billion, up 6-9% in local currency on assumption of a negative 4% foreign exchange impact vs. the same period last year.

Accenture also updated its outlook for fiscal 2019 back in December, where it said that it expects revenues to grow 6-8% in local currency. Diluted EPS was then expected to be $7.01 to $7.25 for the year.

This time around, along with Segment-wise performances, the market would also be looking for any changes in projections by the company for the full year.

 

Earnings Calendar: Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top