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.
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
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
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
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.
Accenture Plc (ACN): Read the Full Research
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