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.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Accenture. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Accenture to My Watchlist.
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. The Motley Fool recommends Accenture. 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.