) is expected to report its second quarter fiscal 2014 results on
March 27. In the last quarter, it delivered +5.50% earnings
surprise. Let's see how things are shaping up for this
Factors to Consider
Accenture's expansive client base is expected to help in
bookings growth. Also, solid performance across insurance,
banking and healthcare segments reflects strong demand for its
services, boosting the company's prospects.
Moreover, increasing focus on the outsourcing business,
operating cost optimization, new bookings and continued return to
shareholders are expected to remain the quarter's positives.
Recent collaborations with
) and IPSoft will diversify Accenture's offerings and cater to
the growing demands, which in turn will help the company gain
However, increasing competition from Cognizant Technology
International Business Machines
), constricted spending environment and Accenture's broad
European exposure may temper its growth prospects to some
Our proven model does not conclusively show that Accenture is
likely to beat earnings estimates this quarter. This is because a
stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
currently stand at $1.04. Thus, the ESP is 0.00%.
Accenture's Zacks Rank #2 (Buy) when combined with a 0.00% ESP
makes surprise predictions difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing a negative estimate
Another company that investors may want to consider as our
model shows that it has the right combination of elements to post
an earnings beat is:
), Earnings ESP of +25.0 % and a Zacks Rank #2.
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