UBS and Raymond James downgrade Accenture (ACN -13.2%) following an FQ3 revenue miss market by...


UBS and Raymond James downgrade Accenture (ACN -13.2%) following an FQ3 revenue miss market by light consulting sales/orders, and soft guidance. UBS' Steve Milunovich, who now rates shares Neutral: "With Oracle and Accenture missing, enterprise demand appears to remain weak, which probably means a soft earnings season for large computer names." He thinks IBM (IBM -2.8%) could still deliver 2H services growth due to less consulting exposure and strong orders, but believes risk has grown. (FQ3 results/call: I, II, III) (CC transcript)
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Comments (4)
  • Momintn
    , contributor
    Comments (6056) | Send Message
     
    Accenture's valuation is just so much higher than IBM's. To be valued more than the S&P, there has to be a reason. And being in Europe doesn't help. IBM is a much better investment with recurring revenue.
    Accenture has a lower earnings yield than the S&P 500. http://bit.ly/OI6tIL?t=acn®ion=USA&cul... Look at the bottom of the page.
    IBM has a higher earnings yield than the S&P 500. http://bit.ly/OI6tIL?t=ibm®ion=USA&cul...
    28 Jun 2013, 10:36 AM Reply Like
  • Momintn
    , contributor
    Comments (6056) | Send Message
     
    http://bit.ly/14xILGH
    29 Jun 2013, 01:28 PM Reply Like
  • jeanewight
    , contributor
    Comments (344) | Send Message
     
    I didn't see it coming; $ACN plunging into relative oblivion...........
    28 Jun 2013, 03:57 PM Reply Like
  • Ilioula
    , contributor
    Comments (39) | Send Message
     
    AWS is eating everyone's lunch. I own IBM but after their Q1 miss I sold over half my holdings. I'm glad I did too. What I don't understand is why big blue doesn't monetize it's patient library; it's the biggest (by far) and best holding they have and it just sits there. Instead of optimizing the value in their assets the company does bolt-on acquisitions. I've read that the company finds it easier going this route. But pardon me, aren't they supposed to be the great innovators?
    29 Jun 2013, 07:33 AM Reply Like
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