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

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Summary:
Accenture delivered mixed fourth-quarter results, wherein the top line surpassed the Zacks Consensus Estimate but the bottom line missed. However, on a year-over-year basis, earnings increased 7% mainly due to higher revenues, higher non-operating income and lower share counts. Revenues increased on a year-over-year basis reflecting an increased focus on the Outsourcing business and new bookings. We believe that 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 stance on Accenture.

Overview:

Headquartered in Dublin, Ireland, Accenture plc is one of world's leading providers of management consultancy, technology and outsourcing services. With over 305,000 employees worldwide, the company provides its services to the clients across several industries such as communications, high tech, financial services, public services, 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.


Communications, Media & Technology: Under this segment, Accenture offer its services to the companies which belong to communications, electronics, high technology, media and entertainment industries. Accenture's professional helps clients in digital transformation and provide industry-specific solutions to enhance business results.

Financial Services: Under this segment, Accenture offer its services to the companies which belong to banking, capital markets and insurance industries. The company helps its clients in transforming business operations, increasing customer base, enhancing cost efficiency and risk management.

Health & Public Service: Under this segment, Accenture offer its services to the healthcare providers, government agencies, public service organizations, educational institutions and non-profit organizations.

Products: Under this segment, Accenture offer its services to the companies which belong to Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail industries.

Resources: Under this segment, Accenture offer its services to the companies which belong to chemicals, forest products, energy, metals and mining, utilities and related industries.

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

The key competitors of the company include Genpact Limited, Cognizant Technology Solutions and Infosys among others.


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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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