Consulting and outsourcing company Accenture Plc (
) late Thursday posted a better-than-expected third quarter profit,
but provided a somewhat timid forecast as currency translation
concerns continue to mount.
The Dublin, Ireland-based company reported fiscal third quarter
net income of $564 million, or 73 cents per share, compared with
$537 million, or 68 cents per share, in the year-ago period.
Revenue rose 8% from last year, to $5.57 billion.
On average, Wall Street analysts expected a smaller profit of 69
cents per share, on lower revenue of $5.46 billion.
Looking ahead, the company predicted fourth quarter revenue to
range from $5.15 billion to $5.35 billion, which would fall short
of analyst expectations for $5.36 billion. It also said it expects
full-year earnings to come in at the lower half of its
previously-announced range of $2.61 to $2.69 per share.
Accenture shares rose 80 cents, or +2.1%, in premarket trading
The Bottom Line
We had removed shares of ACN from our recommended list back on May
14, when the stock was trading at $40.82. The company has a 2.00%
dividend yield, based on last night's closing stock price of
$37.55. The stock has technical support in the $35 price area. If
the shares can firm up, we see overhead resistance around the
$40-$43 price levels. We would remain on the sidelines for now.
Accenture Plc (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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