Accenture (ACN) to Report Q4 Earnings: What's in the Cards?

Accenture plc ACN is scheduled to report fourth-quarter fiscal 2019 results on Sep 26, before market open.

While the top line is likely to benefit from strength across all segments, the bottom line is expected to gain from higher revenues and operating results.

So far this year, shares of Accenture have gained 36.9% compared with 30.9% rise of the industry it belongs and 17.9% rise of the Zacks S&P 500 composite.

 

Let’s check out the expectations in detail.

Strength Across Segments to Boost Revenues

Strength across all the segments — Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources — is likely to drive Accenture’s revenues. The Zacks Consensus Estimate for fourth-quarter fiscal 2019 revenues is pegged at $11.07 billion, indicating growth of 9.1% year over year. Notably, the consensus estimate lies within the company guided range of $10.85-$11.15 billion. In third-quarter fiscal 2019, net revenues of $11.10 billion increased 4% year over year.

Going by segments, the consensus estimate for Communications, Media & Technology revenues is pegged at $2.32 billion, indicating year-over-year growth of 10.7%. The segment should benefit from strength in Software & Platforms across all geographic regions, led by North America. In third-quarter fiscal 2019, segment revenues of $2.25 billion increased 3% year over year.

The consensus mark for Financial Services revenues is pegged at $2.19 billion, indicating year-over-year growth of 9.1%. The segment should benefit from strength in Insurance across all geographic regions and banking & capital markets in Growth Markets, which is likely to be partially offset by a decline in banking & capital Markets in Europe. In third-quarter fiscal 2019, segment revenues of $2.20 billion decreased 2% year over year.

The consensus estimate for Health & Public Service revenues is pegged at $1.78 billion, indicating year-over-year growth of 4.2%. The expected uptick is likely to come from growth in Public Service in North America and Europe and Health in North America.In third-quarter fiscal 2019, segment revenues of $1.82 billion increased 4% year over year.

The consensus estimate for Products revenues is pegged at $3.11 billion, indicating year-over-year growth of 11.3%. Segmental revenues are expected to be driven by strength in Life Sciences across all geographic regions and Consumer Goods, Retail & Travel Services in Europe and Growth Markets.In third-quarter fiscal 2019, segment revenues of $3.08 billion increased 4% year over year.

The consensus mark for Resources revenues stands at $1.69 billion, indicating year-over-year growth of 11.6%. Strength across all industry groups and geographies should boost the segment. In third-quarter fiscal 2019, segment revenues of $1.75 billion increased 13% year over year.

Earnings Expectations

The company’s bottom line is expected to benefit from higher revenues and operating results, lower effective tax rate, lower non-operating expense and share count, which are, likely to be partially offset by a higher income attributable to non-controlling interests.The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at $1.71, indicating year-over-year growth of 8.2%.

In third-quarter fiscal 2019, adjusted earnings of $1.79 per share came ahead of the year-ago figure by 14 cents.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks, Zacks Rank #4 (Sell) or 5 (Strong Sell) are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Accenture has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

Accenture PLC Price and EPS Surprise

 

Accenture PLC Price and EPS Surprise

Accenture PLC price-eps-surprise | Accenture PLC Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.

FLEETCOR Technologies FLT has an Earnings ESP of +1.38% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

S&P Global SPGI has an Earnings ESP of +0.17% and a Zacks Rank #2.

FactSet FDS has an Earnings ESP of +0.57% and a Zacks Rank #3.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
S&P Global Inc. (SPGI) : Free Stock Analysis Report
 
FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report
 
FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report
 
Accenture PLC (ACN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research