) recently announced the launch of an innovation centre for SAP in
Melbourne, Australia. The move is consistent with the company's
growing focus on Enterprise Resource Planning (ERP).
This innovation center is expected to offer efficient and
effective SAP solutions for enterprises and government
organizations in Australia. The newly opened center is an addition
to Accenture and Telstra's existing innovation agenda and will
further enhance the alliance with SAP Australia and New
Accenture's network of innovation centers is co-located and also
takes into account and leverages the skills and expertise at
locations across different centers. The new Melbourne center is an
addition to Accenture's global network of innovation centers in
support of SAP solutions located across different American and
Accenture's comprehensive service offerings have made it one of
the leading IT service providers. A large product and service base
has also placed the company well compared to its peers. Accenture
has regularly won deals from all industrial sectors as well as the
Industry experts, however, are a bit worried about foreign
exchange headwinds that can have a negative impact on its revenue
as most of the company's revenue comes from the international
market. Although Accenture's track record is good, the ongoing
difficult economic conditions in Europe could affect Accenture's
revenues going into fiscal 2013.
The company recently reported its third quarter 2012 earnings
per share (EPS) of $1.03, beating the Zacks Consensus Estimate of
99 cents. Earnings increased 11.3% year over year aided by higher
revenues and margins and lower share count. Whereas the total cash
position of the company stood at $5.6 billion.
The company is also witnessing growth across America and the
Asia Pacific, although the EMEA region is seeing tough times.
Accenture's deal prospects look bright and its endeavor to expand
in Asia is also encouraging, which has renewed business interest in
The ERP innovation centre is another line of business that the
company may focus on in the region. With the continuous emergence
of hi-tech innovations, Accenture could ink deals in technology
services, as well as outsourcing and consulting services.
Although, the company is doing well as a fully scalable SAP
solutions provider, but the same business model may be developed by
other IT companies, which could enhance their business volume.
Currently, Accenture has a short-term Hold rating as denoted by
the Zacks #3 Rank.
ACCENTURE PLC (ACN): Free Stock Analysis Report
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