HomeMost PopularInvestingAccenture (ACN) Benefits From Strategic Acquisition Over Time

Accenture (ACN) Benefits From Strategic Acquisition Over Time

Actionable Trade Ideas

always free

Accenture ACN reported better-than-expected third-quarter fiscal 2023 outcomes, whereby each earnings & revenues elevated 12 months over 12 months. Adjusted earnings (excluding 4 cents from non-recurring objects) of $3.19 per share surpassed the Zacks Consensus Estimate by 7.7% and improved 14.3% from the year-ago fiscal quarter’s studying. The underside line benefited from increased revenues, streamlined operations and optimization of workplace area to scale back prices.

Revenues of $16.6 billion additionally beat the consensus estimate by a slight margin and elevated 2.5% from the year-ago fiscal quarter’s tally on a reported foundation and 9% when it comes to native forex. Revenues benefited from improved segmental outcomes besides in Communications, Media & Know-how.

ACN has a formidable Progress Rating of B. This model rating condenses all of the important metrics from an organization’s monetary statements to get a real sense of the standard and sustainability of its progress.

Accenture PLC Income (TTM)


Accenture PLC Revenue (TTM)

Accenture PLC revenue-ttm | Accenture PLC Quote


Components Boding Properly

Accenture’s outsourcing and consulting companies are thriving as a result of rising demand for cost-effective and efficiency-improving providers. In fiscal 2022, outsourcing revenues grew 19% in USD and 22% in native forex, whereas consulting revenues noticed 25% USD and 29% native forex progress.  Consulting revenues are anticipated to rise 4-5% year-over-year in fiscal 2023 whereas outsourcing revenues are anticipated to develop 16% in native forex.

Acquisitions have performed a pivotal function in Accenture’s progress technique, permitting the corporate to enter new markets, diversify its product choices, and keep its place as a pacesetter within the trade. Within the fiscal 12 months 2022, Accenture made strategic investments of $3.4 billion by 38 acquisitions. In fiscal 12 months 2021, the corporate allotted $4.2 billion towards 46 acquisitions whereas in fiscal 2020, it devoted over $1.5 billion to 34 acquisitions. These acquisitions are anticipated to proceed being a big contributor to Accenture’s income stream.

The latest acquisition of ATI Options Group is aimed toward bolstering Accenture’s capabilities in Australia, the place there’s a excessive demand for specialised digital and industrial expertise. The acquisition of Anser Advisory is anticipated to boost Accenture’s skill to help shoppers in effectively finishing giant and long-term infrastructure tasks. Moreover, the acquisition of Strongbow Consultancy is ready to modernize the IT infrastructure of the businesses.

Accenture’s present ratio (a measure of liquidity) stood at 1.37 on the finish of third-quarter fiscal 2023, increased than 1.27 recorded on the finish of the prior quarter. The progressively rising present ratio bodes nicely for Accenture because it implies that lesser danger of default.

Key Threat

Accenture’s frequent acquisitions, whereas enhancing its income potential, enterprise range, and profitability, additionally introduce integration challenges. Moreover, the fixed acquisition exercise can divert administration’s consideration, probably affecting natural progress sooner or later.

Zacks Rank and Shares to Contemplate

ACN carries a Zacks Rank #3 (Maintain). Listed below are some better-ranked shares from the broader Enterprise Service sector, which can be thought-about by buyers:

Verisk AnalyticsVRSK has overwhelmed the Zacks Consensus Estimate in three of the 4 earlier quarters and matched on one occasion, with a mean shock of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, which displays a lower of 8.2% from the year-ago determine. Earnings are pegged at $5.71 per share for 2023, which is 14% above the year-ago determine. VRSK at present holds a Zacks Rank #2(Purchase). You’ll be able to see the whole listing of at the moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.

Computerized InformationADP at present has a Zacks Rank of two. The corporate beat the Zacks Consensus Estimate in all of the trailing 4 quarters, the typical shock being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies progress of 6.3% and 11.1%, respectively.

BroadridgeBR at present carries a Zacks Rank of two. It beat the Zacks Consensus Estimate in two of the trailing 4 quarters, missed as soon as and matched on one occasion, the typical shock being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings requires an increase of seven.2% and eight.8%, respectively.


7 Greatest Shares for the Subsequent 30 Days

Simply launched: Specialists distill 7 elite shares from the present listing of 220 Zacks Rank #1 Sturdy Buys. They deem these tickers “Most Possible for Early Worth Pops.”

Since 1988, the total listing has overwhelmed the market greater than 2X over with a mean achieve of +24.3% per 12 months. So you’ll want to give these hand-picked 7 your speedy consideration. 

See them now >>

Need the newest suggestions from Zacks Funding Analysis? At present, you’ll be able to obtain 7 Greatest Shares for the Subsequent 30 Days. Click on to get this free report

Accenture PLC (ACN) : Free Inventory Evaluation Report

Broadridge Monetary Options, Inc. (BR) : Free Inventory Evaluation Report

Computerized Information Processing, Inc. (ADP) : Free Inventory Evaluation Report

Verisk Analytics, Inc. (VRSK) : Free Inventory Evaluation Report

To learn this text on Zacks.com click on right here.

Zacks Funding Analysis

The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.