Accenture’s Q3 Profit Beats, but Q4 Forecast Soft on Currency Concerns (ACN)

By
A A A
Share |

Consulting and outsourcing company Accenture Plc ( ACN ) 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 Friday.

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 ( ACN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



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.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: ACN

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

86%

Most Active by Volume

55,414,702
  • $15.38 ▼ 0.39%
38,503,210
  • $66.34 ▲ 2.26%
36,466,704
  • $8.36 ▼ 9.52%
35,253,294
  • $26.55 ▲ 1.34%
32,752,347
  • $6.55 ▲ 1.87%
31,778,001
  • $95.22 ▲ 0.19%
28,396,556
  • $51.49 ▼ 0.62%
23,800,987
  • $42.09 ▲ 0.97%
As of 7/11/2014, 04:03 PM