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Company Profile

Accenture plc (NYSE:ACN) operates as a management consulting, technology services, and global outsourcing company. The Company's business includes five operating groups: Communications, Media & Technology (formerly Communications & High Tech), Financial Services, Health & Public Service, Products and Resources.

Accenture (ACN) is scheduled to report its third quarter earnings results on June 28, 2012, after the market close.

Technical Overview

click to enlarge all images

Accenture has a market cap of $42.17 billion and it is currently trading around $59.36 with a 52 week range of $47.40 to $65.89. The stock has risen 11.95% year to date. The following table provides its key financial ratios:

Key RatioValue
Current Ratio1.53
PEG1.62
P/E15.87
Forward P/E14.11
Profit Margin9.61%
Return On Assets (ROA)18.91%
Return On Equity (ROE)62.67%

Recent News

  • On June 20, 2012, Accenture was declared a leader in business analytics business process outsourcing (BPO), according to the recently published "IDC MarketScape: Worldwide Business Analytics BPO Services 2012 Vendor Analysis
  • On June 13, 2012, Accenture was been selected by Wing Lung Bank, a wholly owned subsidiary of China Merchants Bank, to plan and oversee the implementation of its new core banking technology system as part of the bank's broad business transformation program.
  • On June 7, 2012, Accenture announced the renewal of its contract, through March 31, 2013, with the Japan Pension Service to continue to provide management support to improve the accuracy of pension records.
  • On June 6, 2012, The National Institutes of Health (NIH) selected Accenture Federal Services as one of the prime contractors to provide technology services under a 10-year, $20 billion indefinite-delivery, indefinite-quantity (IDIQ) contract.
  • On June 5, 2012, Accenture launched a new, preconfigured version of its highly regarded Accenture CAS software platform called "Accenture CAS Lite."
  • On June 5, 2012, The Government of India Department of Electronics & Information Technology (DeitY) selected Accenture to review investment proposals from global technology providers and investors interested in building semiconductor fabrication units (fabs) in India.
  • On June 4, 2012, Accenture signed a five-year application development and maintenance services agreement with Nordea, the leading financial services group in the Nordic and Baltic Sea region.
  • On May 31, 2012, Accenture was selected by the District of Columbia to support compliance with federal health insurance exchange deadlines and enable integrated health and human service eligibility processes.
  • On May 29, 2012, Accenture announced it is expanding its global network of Innovation Centers for SAP® solutions with the opening of new centers in Beijing, Tokyo, and Singapore.
  • On May 22, 2012, Accenture expanded its alliance relationship with Salesforce.com (NYSE:CRM), accelerating its market-leading position by ramping up its global workforce, enhancing its skills training and certification program, and launching new Cloud Centers of Excellence in the United States and Canada, and in the UK and France later this year.
  • On May 16, 2012, Accenture unveiled an enhanced version of its claims management software platform
  • On May 15, 2012, Accenture unveiled a cloud-based version of its award winning life insurance new business and underwriting software.

Here's a list of recent changes to analyst ratings:

  • On May 8, 2012, Raymond James initiated coverage on Accenture with an OUTPERFORM rating and set the price target as $72.00.
  • On March 23, 2012, BB&T Capital downgraded Accenture from BUY to HOLD.

Analyst Guidance and Earnings History

The third quarter revenues are expected to be $7.14 billion, compared to $6.72 billion for the same quarter last year. Earnings per share for the third quarter are expected to be $1 a share, up from a 93 cents a share in the year-ago period.

The average price target from analysts for Accenture is $68.42 with an average rating of OVERWEIGHT

Out of the last 4 quarters, Accenture has exceeded the EPS estimates all 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Accenture:

Competition

International Business Machines Corp (NYSE:IBM), Hewlett-Packard Co (NYSE:HPQ), Cognizant Technology Solutions Corp (NASDAQ:CTSH) and Infosys Ltd (NYSE:INFY) are considered major competitors for Accenture and the table below provides the key metrics for these companies:

SymbolACNIBMHPQCTSHINFY
Price$59.59$198.78$21.16$60.35$43.95
52 week price

10.43%

20.59%-39.86%-11.41%-27.76%
Market Capitalization$41.5B$228.7B$41.5B$18.2B$25.4B
Earnings per Share3.7713.422.582.973
Total Revenue$29.2B$107.0B$124.0B$6.5B$7.0B
Employees (Full-Time)236000433362349600137700149994

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I am long IBM.