Accenture delivered mixed fourth-quarter results, wherein the top
line surpassed the Zacks Consensus Estimate but the bottom line
missed the same. Revenues increased on a year-over-year basis
reflecting an increased focus on the Outsourcing business, new
bookings and continuous return of shareholders value. Another
encouraging factor was the revenue increase in its Consulting
business. We believe Accenture's solid performance across
insurance, banking and healthcare segments reflects strong demand
for its services, boosting long-term growth prospects. Nonetheless,
the company provided a tepid outlook. Increasing competition from
Cognizant Technology and IBM, a strained spending environment and
Accenture's broad European exposure may temper its growth prospects
to some extent. Thus, we reiterate our Neutral recommendation on
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
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
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
(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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