Citi Sees Accenture Beating Estimates

Accenture (ACN) should beat Street estimates when it reports earnings Wednesday after the close for its fiscal first quarter ended November, according to Citigroup’s Patrick Burton.

Burton is looking for EPS for the quarter of 57 cents; the Street is at 56 cents. He notes that the shares on average have gained 5.4% on the trading days following its last four positive earnings surprises. He is looking for $5.6 billion in revenue for the quarter, above the consensus at $5.46 billion. Burton sees bookings of $6.4 billion.

Burton says he does not expect any change in guidance, and that management is likely to emphasize the strength of its business. “In particular, management will likely highlight their ability to manage the company’s cost structure and their ability to drive incremental revenues by pitching cost saving initiatives to clients,” he writes.

Burton maintains his Hold rating and $42 price target on the stock.

ACN Tuesday is up $1.22, or 3.6%, at $35.46.