The 10-second takeaway
For the quarter ended Feb. 28 (Q2), Accenture met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded. GAAP earnings per share expanded significantly.
Margins grew across the board.
Accenture booked revenue of $7.06 billion. The 20 analysts polled by S&P Capital IQ expected sales of $7.09 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.00. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.97 per share. Non-GAAP EPS of $1.00 for Q2 were 3.1% higher than the prior-year quarter's $0.97 per share. GAAP EPS of $1.65 for Q2 were 70% higher than the prior-year quarter's $0.97 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%, 50 basis points better than the prior-year quarter. Operating margin was 13.3%, 20 basis points better than the prior-year quarter. Net margin was 15.6%, 610 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.43 billion. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $29.18 billion. The average EPS estimate is $4.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,276 members out of 1,342 rating the stock outperform, and 66 members rating it underperform. Among 390 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 379 give Accenture a green thumbs-up, and 11 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 $74.13.
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