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Accenture plc (NYSE:ACN) operates as a management consulting, technology services, and outsourcing company worldwide. It offers various management consulting services, which include customer relationship management, finance and enterprise performance management, risk management, supply chain management, talent and organization management, strategy, and operations related services.

It is scheduled to report its Q3 2012 results on June 28, 2012, after the bell.

Technical Overview


Key Metrics

  • Market Cap: 42.00B
  • 52-week trading range: 47.40 - 65.89
  • Trailing P/E: 15.80
  • Forward P/E: 14.05
  • Price/Sales: 1.41
  • Price/Book: 8.59
  • PEG Ratio: 1.54
  • Total Debt: 5.85M
  • Annual dividend yield: 2.30%
  • Return on Equity: 62.12%
  • Return on Assets: 16.07%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.97 EPS, beating analyst estimates of $0.86.

The consensus EPS is $1.00 based on 21 analysts' estimates, up from $0.93 a year ago. Revenue estimates are $7.14B, up from $6.72B a year ago. The median target price by analysts for the stock is $69.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 23, 2012, Barclays reiterated Equal Weight rating for the company.
  • On March 22, 2012, the company was downgraded from Buy to Hold at BB&T Capital Mkts.

Latest Developments

  • On June 13, 2012, Accenture PLC announced that it has 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 PLC 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 Plc's 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, The Government of India Department of Electronics and Information Technology (DeitY) announced that it has 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 PLC announced that it has signed a five-year application development and maintenance services agreement with Nordea, the financial services group in the Nordic and Baltic Sea region.
  • On April 10, 2012, Accenture Plc announced that it has completed its acquisition of Neo Metrics Analytics S.L. a consulting firm specializing in optimization and predictive analytics based in Madrid, Spain.
  • On April 3, 2012, Accenture Plc announced that it will team with SAS Institute to implement the SAS Risk Management for Insurance solution group-wide at Folksam, one of Sweden's insurers, to help comply with the Solvency II directive's legal reporting requirements.
  • On March 29, 2012, Accenture Plc announced that it has signed a contract with Guinness Anchor Berhad (NYSE:GAB) to license and implement its Accenture CAS software platform. Financial terms of the agreement were not disclosed.
  • On March 22, 2012, Accenture Plc announced that for the third quarter of 2012, it expects net revenues to be in the range of $7.05-$7.25 billion. For fiscal 2012, the Company raised its revenue to be in the range of 10% to 12% in local currency and EPS to be in the range of $3.76-$3.84.
  • On March 7, 2012, Accenture Plc announced that its claims management software application, Accenture Claim Components, has been selected by Farm Bureau Financial Services to serve as the insurer`s core claims processing system for its personal and commercial lines.

Competitors

Accenture plc operates in Information Technology Services industry. The company could be compared to Cognizant Technology Solutions Corporation (NASDAQ:CTSH), International Business Machines Corporation (NYSE:IBM), Infosys Ltd. (NYSE:INFY), and Wipro Ltd. (NYSE:WIT). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)ACN Chart

ACN data by YCharts

Competitors' Latest Development

  • On June 14, 2012, Wipro Technologies, the Global Information Technology, Consulting and Outsourcing business of Wipro Ltd., was chosen by MMG, a mid-tier global recourses company as their strategic partner to define and deliver MMG's 'Integrated Business Management' program over a period of three years.
  • On June 14, 2012, Cognizant Technology Solutions Corp. announced that it has expanded its relationship with ING U.S. to offer a comprehensive array of insurance business process services.
  • On June 14, 2012, Infosys Ltd announced a strategic business alliance with Resonant Software, a company with an underwriting and new business solution for the life insurance industry.
  • On June 14, 2012, Infosys Ltd announced that it has signed a Memorandum of Understanding (MOU) with The State of Israel, to establish and enhance cooperation in industrial research and development.
  • On June 13, 2012, International Business Machines Corp announced that it has completed acquisition of Tealeaf Technology, Inc. Terms of the transaction were not disclosed.
  • On June 7, 2012, International Business Machines Corp announced that Sree Charan Souharda Cooperative Bank has selected IBM SmartCloud to help it meet growing demand, add new customer services and to centralize mission-critical operations such as real-time transaction processing across its five branches in Bangalore.
  • On June 2, 2012, The Economic Times reported that Wipro Infotech has won a 10-year contract from Manipal Health Enterprises Private Limited (MHEPL). The India and Middle East IT Business unit of Wipro Ltd will now implement Hospital Information System Solutions & data migration services across Manipal Group Hospitals, which could significantly reduce patients waiting time and enable better utilization of hospital revenues, the Company said in a statement.
  • On June 1, 2012, Pegasystems Inc announced that Wipro Technologies, the Global Information Technology, Consulting and Outsourcing business of Wipro Limited is a platinum partner of Pegasystems.
  • On May 29, 2012, International Business Machines Corp announced it has completed the acquisition of Vivisimo, provider of federated discovery and navigation software that helps organizations access and analyze big data.
  • On May 23, 2012, International Business Machines Corp announced it has completed the acquisition of Varicent Software Incorporated, provider of analytics software for compensation and sales performance management.
  • On May 21, 2012, International Business Machines Corp announced that The U.S. General Services Administration has awarded a contract to the Company to develop and install advanced smart building technology in 50 of the federal government's highest energy-consuming buildings.
  • On May 7, 2012, International Business Machines Corp And Banco de Credito del Peru announced a five-year agreement for IT outsourcing services. The agreement will enable BCP to optimize its operational expenses, relying on IBM to provide IT infrastructure management services, including support, operation and maintenance of the bank's mainframe, midrange and storage platforms.
  • On May 3, 2012, International Business Machines Corp and the Department of Science and Technology (DOST) of the Republic of the Philippines today signed a Memorandum of Understanding to work together to establish the first Philippine Systems & Technology R&D Laboratory to help spur economic growth.
  • On May 2, 2012, International Business Machines Corp announced a definitive agreement to acquire Tealeaf Technology, Inc., a provider of customer experience analytics software that helps organizations to gain intelligence and react more swiftly to consumer trends in digitally transformed marketplace.
  • On April 25, 2012, International Business Machines Corp and Bauman Moscow State Technical University announced the opening of a Smarter Cities Development and Education Center in Russia - the first of its kind in the region.
  • On February 13, 2012, Cognizant Technology Solutions Corp. announced that it has entered into a five-year, multimillion dollar engagement with Future Group, to provide end-to-end IT infrastructure services for all Future Group companies.
  • On February 8, 2012, Cognizant Technology Solutions Corp. announced that Gordon Coburn has been promoted to President and Karen McLoughlin has been promoted to Chief Financial Officer.
  • On January 18, 2012, Cognizant Technology Solutions Corp. announced that it has been selected as a strategic partner by INTTRA, a provider of e-commerce solutions for the ocean freight industry, to streamline INTTRA's applications and quality assurance portfolios.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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