Consulting and outsourcing services provider,
), is slated to release fiscal fourth-quarter 2013 results on Sep
26, 2013, after the closing bell. It is noteworthy that in the
last quarter, Accenture's earnings were in line with the Zacks
Consensus Estimate. The company has a trailing four-quarter
average positive surprise of 2.51%. Let us see how things are
shaping up for this quarter.
Key Factors this Past Quarter
Accenture's third-quarter bottom line matched the Zacks
Consensus Estimate while the top line lagged the same. Earnings
increased 10.7% from the year-ago quarter on the back of higher
margins and lower share count.
The top line increased 1.0% (in U.S. $) on a year-over-year
basis due to modest growth in three operating segments, the
Outsourcing business and strength in the Americas which offset a
soft Consulting business and Euro issues.
Moreover, Health & Public Services, Financial Services and
Products generated single-digit revenue growth (5.0%, 9.0% and
1.0%, respectively). The company also witnessed strong bookings
for the quarter.
Increasing focus on the outsourcing business, operating cost
optimization, new bookings and continued return to shareholders
are expected to remain the quarter's positives. However, the
challenging macroeconomic environment and constricted spending
from clients could pose headwinds for the company.
The Zacks Consensus Estimate for the third quarter stands at
$1.00 while that for fiscal 2013 stands at $4.20. Neither of the
estimates has been revised in the last 60 days.
The stock carries a Zacks Rank #3 (Hold).
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Our model states that a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 to beat earnings estimates. You
could, however, consider the following stocks that satisfy both
Micron Technology Inc.
) Earnings ESP of +4.35% and a Zacks Rank #1 (Strong Buy)
) Earnings ESP of +1.05% and a Zacks Rank #2 (Buy)
) Earnings ESP of +1.49 and Zacks Rank #2 (Buy)
ACCENTURE PLC (ACN): Free Stock Analysis
MICRON TECH (MU): Free Stock Analysis Report
PLEXUS CORP (PLXS): Free Stock Analysis
SYNNEX CORP (SNX): Free Stock Analysis Report
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