Yahoo Finance Accenture (ACN) to Report Q3 Earnings: What's in Store?
Accenture plc ACN is scheduled to release third-quarter fiscal 2024 results on Jun 20, before market open.
ACN has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 4.9%.
Accenture PLC Price and EPS Surprise
Accenture PLC price-eps-surprise | Accenture PLC Quote
Q3 Expectations
The Zacks Consensus Estimate for the top line is pegged at $16.5 billion, suggesting a marginal decline from that reported in third-quarter fiscal 2023. The company’s top line is expected to have been negatively impacted by lower discretionary spend, and the softness in software and platforms, communications and media, and banking and capital markets.
Our estimate for revenues from the Managed Services segment is pegged at $8.2 billion, implying a 4.6% increase from the year-ago quarter’s reported number. The company’s ability to leverage the SynOps platform to drive automation and deliver efficiencies, which are measurable across the fuels marketing business, is likely to have driven this segment’s revenues. Our estimate for Consulting revenues is pegged at $8.3 billion, indicating a year-over-year 4.6% decline. The dip is expected to have been led by a limitation in discretionary spend.
Our expectation for the Health & Public Services segment’s revenues is pegged at $3.4 billion, indicating a 3.8% rise from the year-ago quarter’s actual. We anticipate revenues from the Resources segment to be $2.5 billion, suggesting 7.5% growth on a year-over-year basis. Revenues from the Communications, Media & Technology segment are expected to decline 3.1% from third-quarter fiscal 2023 actuals to $2.8 billion.
Our estimate for the Products segment’s revenues is pegged at $4.8 billion, indicating a dip of 3.7% from the year-ago reported level. We expect Financial Services revenues to be $3.1 billion, implying a 2.1% decrease from the year-ago quarter’s actual.
Moving to geographical markets, we expect revenues from North America to increase slightly to $7.7 billion due to decreases in banking, software and platforms, capital markets, and communication and media. Our estimate for revenues from the EMEA region is pegged at $5.8 billion, suggesting a marginal decrease from the year-ago quarter’s actual. A fall in communications and media, and banking capital markets is anticipated to have led to the decline in EMEA revenues.
The Zacks Consensus Estimate for the bottom line is pegged at $3.1 per share, which indicates a 1.6% decrease from the year-ago quarter’s reported number. The decline is likely to have occurred due to business optimization actions.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ACN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
ACN has an Earnings ESP of -0.83% and a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Results of Other Service Providers
ABM Industries Incorporated ABM reported impressive second-quarter fiscal 2024 results.
ABM’s EPS (excluding 18 cents from non-recurring items) was 87 cents, which beat the Zacks Consensus Estimate by 11.5% but decreased 3.3% from the year-ago quarter. Total revenues of $2 billion outpaced the consensus mark by 1% and increased 1.7% on a year-over-year basis.
H&R Block, Inc. HRB reported impressive third-quarter fiscal 2024 results.
HRB’s adjusted earnings (adjusting 8 cents from non-recurring items) of $4.94 per share surpassed the Zacks Consensus Estimate by 6% and increased 17.6% from the year-ago quarter. Revenues of $2.18 billion beat the consensus estimate by 2% and increased 4.4% year over year.
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Accenture PLC (ACN) : Free Stock Analysis Report
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H&R Block, Inc. (HRB) : Free Stock Analysis Report