) is a major player in technology consulting where it competes
with IBM (
), HP (
) and Deloitte Consulting. Through a large number of skilled
technology consultants, Accenture helps its clients to develop and
implement customized IT strategies.
Accenture reported strong results in its fiscal Q2'11 earnings
release few weeks back, raising the outlook for the full fiscal
year's revenues. The firm generated $6 billion in net revenues
during the quarter, an increase of 17% over the same period last
year and above guidance of between $5.6 billion and $5.8
billion. Consulting revenues grew 20% over last year to $3.5
billion for the quarter. Outsourcing revenues were strong as well,
up 13% over last year to $2.5 billion.
We currently have a
price estimate of $51.92 for Accenture's stock
, roughly 5% below market price.
Accenture Generates Strong New Bookings
Accenture delivered strong bookings and revenue growth in fiscal
Q2'11. New bookings for the quarter were $7 billion, the highest in
10 quarters. The technology consulting and systems integration
segments delivered the strongest gains in bookings. Technology
outsourcing and BPO bookings also grew significantly.
Accenture to Hire 64,000 in Fiscal Year 2011
Accenture's headcount stood at 204,000 at the end of fiscal year
2010. The firm plans to hire more than 64,000 people in fiscal
year 2011, and had only reached a total headcount of 215,000 at the
end of fiscal Q2'11. Adjusting for the firm's attrition rate of
around 14%-15% over the first two quarter, Accenture's headcount
could increase by 10% for the full year 2011.
Our base case forecasts suggest a 2% increase in Accenture's
technology consultant headcount during 2011 to about 17,800
employees. However, a 10% increase in technology consultants,to
about 19,200 in 2011, would add about 2% to our
$51.92 price estimate for Accenture's stock
. But technology consulting is just one business segment for
Accenture. A 10% increase in headcount across all Accenture
business segments would add about 7% to our price estimate for the
You can drag the trend line in the interactive chart above to
see how different scenarios for technology consultant headcount
could affect Accenture's stock value.
See our complete analysis of Accenture stock