Q2 Preview: Accenture (ACN) Could Issue a 'Beat and Raise' Quarter

Accenture (NYSE: ACN) shares are lower but well off session lows Thursday as investors are prepping for the company's second-quarter results, due out after the market close this afternoon. Volume is very slightly heavier than normal.

The Street is anticipating quarterly earnings of 86 cents per share on sales of $6.64 billion. If Accenture can hit those figures, earnings would be up more than 14.5 percent from earnings of 75 cents per share reported during the same quarter last year. Sales would be up just 2 percent year over year.

17 analysts currently rate Accenture shares a Buy, eight rate the stock a Hold, and none want investors to sell the stock.

Analyst Comments:

• JPMorgan - Sees quarterly results being "good enough to quell fading concerns that ACN will see demand dry up like it did two years ago. Should Q2 results come in at the high-end, we expect FY12 revenue growth guidance will need to shift to the high-end of its 7-10% range in order to satisfy the bulls - we estimate FY12 revenue growth at ~10%."
  
  The firm said it will be watching fourth-quarter guidance very closely as it will offer "a clue on exit rate going into FY13 (we estimate an FY12 exit rate of 7% growth)."
  
  JPMorgan maintains an Overweight rating and $71 price target on Accenture.
  
  
• Goldman Sachs - Sees increased confidence in FY12, but is concerned with limited upside. Related to improved FY12 sales growth, Goldman cites "channel checks, stable 2012 IT budgets, and an improved macro backdrop."
  
  The firm has modeled for FY12 EPS of $3.85, FY13 EPS of $4.32, and FY14 EPS of $4.79. These estimates were all recently raised.
  
  Maintains Neutral rating.
  
  
• Deutsche Bank – The firm said expectations are high amid strong fundamentals, and would be not surprised if the current quarter’s results beat estimates and the FY12 guidance gets raised. Looking for EPS of 85 cents on sales of $6.657 billion.
  
  Firm maintains Buy rating and $71 price target.

Accenture shares last traded at $63.43, down 0.5 percent for the session.

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