The 10-second takeaway
For the quarter ended May 31 (Q3), Accenture met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Gross margins shrank, operating margins dropped, net margins increased.
Accenture notched revenue of $7.15 billion. The 16 analysts polled by S&P Capital IQ hoped for a top line of $7.16 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $6.72 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 $1.03. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share. GAAP EPS of $1.03 for Q3 were 11% higher than the prior-year quarter's $0.93 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 33.1%, 130 basis points worse than the prior-year quarter. Operating margin was 14.8%, 40 basis points worse than the prior-year quarter. Net margin was 9.6%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.73 billion. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $27.81 billion. The average EPS estimate is $3.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,266 members out of 1,332 rating the stock outperform, and 66 members rating it underperform. Among 356 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 342 give Accenture a green thumbs-up, and 14 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 $69.45.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Accenture Class A Ordinary. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.