Q1 Preview: Analysts Expecting Inline Results from Accenture (ACN), But How Will the Market React?
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Price: $183.69 +1.29%
Rating Summary:
26 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of Accenture (NYSE: ACN) are trading slightly higher ahead of the company's first-quarter results Thursday following the closing bell. The first-quarter conference call is scheduled for 4.30 pm EST; Dial-In: +1 (800) 398-9389 and +1 (612) 332-0637 internationally.
The Street expects Accenture to report earnings of $0.94 per share for the quarter on $6.84 billion in sales. For the full year, the consensus estimate sits at $3.83 per share in earnings on $27.52 billion in total sales. During the first quarter of 2011, the company reported earnings of $0.81 per share on $6.05 billion in total sales.
16 analysts currently have Buy ratings on the stock, 7 are at Hold, and none suggest to Sell shares of Accenture. The average price target on shares of Accenture is $62.50 with a range from $50 to $71.
Goldman is estimating management will report first-quarter results relatively inline with expectations. The firm sees earnings of $0.95 per share on $6.835 billion in sales. Operating margin is expected to be 13.9 percent.
Goldman notes near-term multiple expansion will be limited as investors factor in the company’s high European exposure and prospect for lower tech spending in 2012. The firm believes providing “sustained earnings growth” will drive the stock higher during fiscal 2012. Goldman is maintaining its Buy rating and $62 price target on the shares going into the call tonight.
“ACN’s results will provide an important read on the current state of enterprise IT spend and visibility for 2012 which remains the biggest outstanding questions for Consulting and Outsourcing stocks,” a Goldman analyst said.
JPMorgan is also predicting Accenture will report results inline with expectations, forecasting earnings of $0.94 per share on $6.974 billion in sales. The firm estimates operating margin will come to 13.7 percent. JPMorgan is reaffirming its Overweight rating and $64 price target on shares of CAN going into the call.
During the conference, JPMorgan expects management to reiterate its fiscal 2012 revenue growth guidance of 7-10 percent. The firm also believes strong sales growth and buybacks will increase earnings growth in 2012 by roughly 3 percent. An analyst at the firm highlights, “While the company’s high exposure to Europe (40% of revenue) could raise concerns of a potential slowdown, we believe the company services many large and global clients in the region whose IT spending plans are not necessarily tied to just Europe. Our fiscal 12 revenue estimate remains essentially unchanged”
Ahead of the company’s release, Deutsche Bank is bullish on the stock’s price, but not on the company’s first quarter estimates. For the quarter, the firm is estimating earnings of $0.93 per share on $6.89 billion in sales. Deutsche Bank does note there may be some upside to its estimates.
Deutsche Bank is sticking with its Buy rating and $71 price target on the shares as the firm believes the stock will continue to outperform despite the macro concerns. The firm is also anticipating management will maintain its previous fiscal 2012 sales growth guidance.
An analyst at Deutsche said, “Although bookings can be lumpy, given the uncertain economic environment, we believe investors will closely watch bookings and headcount totals for Q1 as leading indicators for the back half of fiscal 2012. We conservatively estimate total Q1 bookings at $6.8 billion,”..” Additionally, we estimate total 1Q12 headcount of 246,712k, which could prove conservative considering the 2,300 Nokia employee transfer on 9/30 and the addition of 3,700 employees from the Zenta acquisition.”
Kaufman Bros. does not see the overall macro slowdown affecting the company’s quarterly growth and sees upside potential to the Street’s estimates. The firm feels management will reiterate its top-line growth outlook for fiscal 2012.
The Street expects Accenture to report earnings of $0.94 per share for the quarter on $6.84 billion in sales. For the full year, the consensus estimate sits at $3.83 per share in earnings on $27.52 billion in total sales. During the first quarter of 2011, the company reported earnings of $0.81 per share on $6.05 billion in total sales.
16 analysts currently have Buy ratings on the stock, 7 are at Hold, and none suggest to Sell shares of Accenture. The average price target on shares of Accenture is $62.50 with a range from $50 to $71.
Goldman is estimating management will report first-quarter results relatively inline with expectations. The firm sees earnings of $0.95 per share on $6.835 billion in sales. Operating margin is expected to be 13.9 percent.
Goldman notes near-term multiple expansion will be limited as investors factor in the company’s high European exposure and prospect for lower tech spending in 2012. The firm believes providing “sustained earnings growth” will drive the stock higher during fiscal 2012. Goldman is maintaining its Buy rating and $62 price target on the shares going into the call tonight.
“ACN’s results will provide an important read on the current state of enterprise IT spend and visibility for 2012 which remains the biggest outstanding questions for Consulting and Outsourcing stocks,” a Goldman analyst said.
JPMorgan is also predicting Accenture will report results inline with expectations, forecasting earnings of $0.94 per share on $6.974 billion in sales. The firm estimates operating margin will come to 13.7 percent. JPMorgan is reaffirming its Overweight rating and $64 price target on shares of CAN going into the call.
During the conference, JPMorgan expects management to reiterate its fiscal 2012 revenue growth guidance of 7-10 percent. The firm also believes strong sales growth and buybacks will increase earnings growth in 2012 by roughly 3 percent. An analyst at the firm highlights, “While the company’s high exposure to Europe (40% of revenue) could raise concerns of a potential slowdown, we believe the company services many large and global clients in the region whose IT spending plans are not necessarily tied to just Europe. Our fiscal 12 revenue estimate remains essentially unchanged”
Ahead of the company’s release, Deutsche Bank is bullish on the stock’s price, but not on the company’s first quarter estimates. For the quarter, the firm is estimating earnings of $0.93 per share on $6.89 billion in sales. Deutsche Bank does note there may be some upside to its estimates.
Deutsche Bank is sticking with its Buy rating and $71 price target on the shares as the firm believes the stock will continue to outperform despite the macro concerns. The firm is also anticipating management will maintain its previous fiscal 2012 sales growth guidance.
An analyst at Deutsche said, “Although bookings can be lumpy, given the uncertain economic environment, we believe investors will closely watch bookings and headcount totals for Q1 as leading indicators for the back half of fiscal 2012. We conservatively estimate total Q1 bookings at $6.8 billion,”..” Additionally, we estimate total 1Q12 headcount of 246,712k, which could prove conservative considering the 2,300 Nokia employee transfer on 9/30 and the addition of 3,700 employees from the Zenta acquisition.”
Kaufman Bros. does not see the overall macro slowdown affecting the company’s quarterly growth and sees upside potential to the Street’s estimates. The firm feels management will reiterate its top-line growth outlook for fiscal 2012.
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