Accenture (ACN) Tops Q2 EPS by 19c, Offers Guidance

Accenture (NYSE: ACN) reported Q2 EPS of $1.91, $0.19 better than the analyst estimate of $1.72. Revenue for the quarter came in at $11.1 billion versus the consensus estimate of $11.1 billion.

GUIDANCE:

Accenture sees Q3 2020 revenue of $10.75-11.15 billion, versus the consensus of $11.74 billion.

• Accenture expects revenues for the third quarter of fiscal 2020 to be in the range of $10.75 billion to $11.15 billion, or negative 2% to positive 2% growth in local currency, reflecting the company’s assumption of a negative 1.5% foreign-exchange impact compared with the third quarter of fiscal 2019.

Accenture sees FY2020 EPS of $7.48-$7.70, versus the consensus of $7.84.

• Accenture’s business outlook for the full 2020 fiscal year now assumes that the foreign-exchange impact on its results in U.S. dollars will be negative 1.5% compared with fiscal 2019. The company previously had assumed a negative 1% foreign-exchange impact.
• For fiscal 2020, the company now expects revenue growth to be in the range of 3% to 6% in local currency, compared with 6% to 8% previously.
• Accenture now expects operating margin for the full fiscal year to be in the range of 14.7% to 14.8%, an expansion of 10 to 20 basis points from fiscal 2019. The company previously expected operating margin to expand 10 to 30 basis points.
• The company continues to expect its annual effective tax rate to be in the range of 23.5% to 25.5%.
• The company now expects diluted EPS to be in the range of $7.48 to $7.70, compared with $7.66 to $7.84 previously.
• For fiscal 2020, the company now expects operating cash flow to be in the range of $6.15 billion to $6.65 billion, compared with $6.35 billion to $6.75 billion previously; continues to expect property and equipment additions to be $650 million; and now expects free cash flow to be in the range of $5.5 billion to $6.0 billion, compared with $5.7 billion to $6.1 billion previously.

For earnings history and earnings-related data on Accenture (ACN) click here.

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