Accenture plc (ACN): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Accenture delivered dismal second-quarter results, wherein both the top and bottom lines missed the Zacks Consensus Estimate. However, revenues increased on a year-over year basis due to continued growth in the Outsourcing business, which led to bookings growth. Guidance was also encouraging. Nonetheless, its consulting business remains a disappointment. Improved bookings growth and solid performance across insurance, banking and healthcare segments reflects strong demand for Accenture's services, boosting long-term growth prospects. However, increasing competition from its peers, a strained spending environment and Accenture's broad European exposure may temper its growth prospects to some extent. Thus, we initiate our coverage on Accenture with a Neutral recommendation.

Overview:

Based in Dublin, Ireland, Accenture plc (ACN) is one of the world's leading management consulting and technology services organizations. With about 275,000 employees globally, the company delivers a wide range of consulting, technology and outsourcing services to its clients in industries such as communications, high tech, financial services, public service, products and resources.

Accenture has extensive relationships with the world's leading companies and governments and operates in over 200 cities in 56 countries. It seeks to deliver value to its clients by leveraging its industry knowledge, global delivery capability and technological expertise.

The company reports under five segments, namely, Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources. The company derives its revenues by providing Outsourcing and Consulting services.

Geographically, revenues are generated in the Americas, EMEA (including Europe, Middle East and Africa) and the Asia Pacific.

Most of the competition comes from International Business Machines Corp., Genpact Limited, Cognizant Technology Solutions Corp. and Infosys Ltd.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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