Accenture Earnings Preview: Revenues Set To Grow Yet Again

December 19th, 2017 by Trefis Team
-28.50%
Downside
315
Market
226
Trefis
ACN: Accenture logo
ACN
Accenture

Accenture (NYSE:ACN) is set to report its fiscal Q1 2018 earnings on Thursday, December 21. In the previous quarter, the company reported 7.8% year-on-year (y-o-y) growth in revenues to $9.15 billion. In Q4, the company reported record new signings as its book-to-bill ratio, which indicates the dollar amount of new orders received for every dollar amount of revenue billed, stabilized at 1.1x. During this earnings announcement, we expect:

  • Consulting revenues to outpace the growth in the industry. We also expect that the Consulting business will deliver mid to low-single-digit growth in Q1 2018, as significant investments in new and high-growth areas such as Artificial Intelligence, Internet of Things, digital, cloud and security services continue to gain traction. However, we expect the company’s consulting book-to-bill ratio to stabilize at 1.2x as it signs more consulting contracts.
  • Accenture has been fortifying its outsourcing business by adding robotic process automation (RPA) capabilities to its offerings. This has helped the company to shore up its revenues and bag new orders. As a result, its outsourcing revenues have outperformed the industry. We believe that this trend continued in Q1 and its outsourcing revenues once again outpaced the broader outsourcing industry. We expect the company to report mid-single digit growth in revenues for Q1.

See our full analysis for Accenture

Company’s Guidance For FY18 and FYQ1

Relevant Articles
  1. Why Has Accenture Stock More Than Doubled Since Late 2018?
  2. Cognizant Technology Solutions’ Stock To Continue Its Rally?
  3. Demand Recovery To Propel Accenture Stock Past $300?
  4. Has Accenture Stock Peaked?
  5. Up 16% This Year, Accenture Stock Headed Back Down?
  6. Accenture Stock Peaked At $200?

Accenture expects its net revenue to be in the range of $9.1 billion to $9.35 billion in fiscal Q1, a growth of 5-8% in local currency. For fiscal 2018, the company expects its revenues to grow in the same range. The company expects diluted EPS to be in the range of $6.36 to $6.60 for the year, and expects its operating margin for the full year to be in the 15% range, an expansion of 10 to 30 basis points from the adjusted operating margin for fiscal 2017.

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research