The 10-second takeaway
For the quarter ended May 31 (Q3), Accenture missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share expanded slightly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins shrank, net margins increased.
Accenture logged revenue of $7.20 billion. The 19 analysts polled by S&P Capital IQ foresaw revenue of $7.42 billion on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $7.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.06. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.13 per share. Non-GAAP EPS of $1.06 for Q3 were 2.9% higher than the prior-year quarter's $1.03 per share. GAAP EPS of $1.21 for Q3 were 17% higher than the prior-year quarter's $1.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 150 basis points worse than the prior-year quarter. Operating margin was 14.2%, 60 basis points worse than the prior-year quarter. Net margin was 10.5%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.91 billion. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $28.55 billion. The average EPS estimate is $4.27.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,282 members out of 1,350 rating the stock outperform, and 68 members rating it underperform. Among 377 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 364 give Accenture a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Accenture is outperform, with an average price target of $79.90.
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