Mon, Apr. 18, 11:54 AM
- Earlier this morning, Accenture (NYSE:ACN) announced the formation of a joint venture with Apax partners after selling a majority stake in Duck Creek.
- Citi: "Accenture is Guidewire’s (NYSE:GWRE) largest competitor so we view their partial exit from the software side of the business as a positive development. In the long term, we believe the formal exit on the software side opens up the possibility of a more collaborative relationship which would be a significant step forward.
- "Our industry inputs indicate that there is significant interest amongst larger carriers to see greater collaboration between Guidewire and Accenture. The rivals settled an IP infringement lawsuit at the end of 2011. We believe the settlement coupled with a less involved role at Duck Creek opens up the possibility of seeing more cooperation between the two rivals which we would view as a significant.
- "We would also note that we view Apax’s acquisition of a P&C software vendor as validation of several industry inputs that indicate significant fund flowing into insurance tech. We continue to hear that private equity and venture investors have been much more active in this market and we believe that should help boost valuation multiples across the insurance technology landscape."
- Now read Guidewire: Time To Stop Idolizing - The Model Is Hardly Any Different »
Mon, Apr. 18, 11:47 AM
- Accenture (NYSE:ACN) and privately-owned Apax Partners have agreed to form a joint venture to accelerate the innovation of claims, billing and policy administration software for the insurance industry.
- Funds advised by Apax will acquire a 60% stake in Accenture’s Duck Creek Technologies; ACM will retain a 40% stake.
- The joint venture is intended to further accelerate the development of Duck Creek products and technologies, leveraging advanced digital and cloud technology, and to extend the reach of Duck Creek in key markets.
- Duck Creek Technologies will gain access to substantial capital and management expertise through Apax Partners. This will enable further investment, both organically and through acquisitions, to fuel rapid expansion of Duck Creek products and capabilities – particularly Duck Creek On-Demand, a native SaaS capability delivered through the cloud.
Thu, Apr. 14, 1:36 PM
- Morgan Stanley identifies 30 stocks for investors to snap up and hold until 2019.
- The investment firm narrowed its list by focusing on strong brands/franchises with distinct competitive advantages, while also scoring strong on pricing power, cost efficiency, and growth.
- The MS list includes Accenture (NYSE:ACN), Alphabet, Amazon.com, Apple, Blackstone Group (NYSE:BX),Comcast (NASDAQ:CMCSA), Constellation Brands (NYSE:STZ), CVS Health (NYSE:CVS), Danaher (NYSE:DHR), Dollar General (NYSE:DG), Estee Lauder (NYSE:EL), Facebook, First Republic Bank (NYSE:FRC), HCA Holdings (NYSE:HCA), International Business Machines (NYSE:IBM), JPMorgan Chase, L Brands (NYSE:LB), Mettler-Toledo (NYSE:MTD), NextEra Energy (NYSE:NEE), Nike (NYSE:NKE), Panera Bread (NASDAQ:PNRA), Philip Morris International (NYSE:PM), Public Storage (NYSE:PSA), Ross Stores (NASDAQ:ROST), SBA Communications(NASDAQ:SBAC), ServiceMaster (NYSE:SERV), T-Mobile (NASDAQ:TMUS), Visa (NYSE:V), WhiteWave Foods (NYSE:WWAV), and Zayo Group Holdings (NYSE:ZAYO).
Thu, Mar. 24, 11:57 AM
- Accenture's (ACN +3.8%) FQ2 beat has been accompanied by guidance for FY16 (ends Aug. '16) adjusted EPS of $5.21-$5.32, up from a prior $5.09-$5.24 and mostly above a $5.22 consensus.
- FY16 constant currency revenue growth guidance has been hiked to 8%-10% from 6%-9%. With forex still expected to have a 5% impact, dollar-based revenue growth guidance is at 3%-5%, in-line with a 3.7% consensus.
- FQ3 revenue guidance of $8.1B-$8.35B is in-line with an $8.17B consensus. FY16 op. cash flow and free cash flow guidance respectively remain at $4.1B-$4.4B and $3.6B-$3.9B.
- Bookings: New bookings rose by $200M Y/Y to $9.5B. Consulting bookings rose by $800M to $5B, while outsourcing bookings (pressured to an extent by cloud services adoption) fell by $600M to $4.5B. Forex had a 6% impact on bookings growth.
- Segment performance: Telecom/media/tech revenue +6% Y/Y to $1.6B. Financial services +6% to $1.7B. Health/public service +12% to $1.5B. Products (manufacturing) +8% to $2B. Resources (hurt by weak oil/commodity prices) -3% to $1.2B.
Overall, consulting revenue rose 12% to $4.3B, while outsourcing was roughly flat at $3.7B. CEO Pierre Nanterme asserts Accenture "gained significant market share."
- Regional performance: North America revenue +11% to $3.8B. Europe (9% forex impact) +5% to $2.8B. "Growth markets" (14% forex impact) -4% to $1.4B.
- Financials: Buybacks once more boosted EPS: $829M was spent to repurchase 8.1M shares. $6.4B is left on Accenture's buyback authorization. Op. margin rose 10 bps Y/Y to 13.7%. Accenture ended FQ2 with $3B in cash and less than $30M in debt.
- Along with the numbers, Accenture has declared its semi-annual $1.10/share dividend (2% yield). The next dividend will be paid on May 13 to shareholders on record as of April 15.
- Accenture's FQ2 results, earnings release
Thu, Mar. 24, 7:02 AM
Wed, Mar. 23, 5:30 PM
Fri, Feb. 19, 7:25 AM
Thu, Jan. 14, 1:12 PM
- Infosys (NYSE:INFY) has jumped to its highest levels since November after beating FQ3 revenue estimates (EPS was in-line) and raising its FY16 (ends March '16) dollar-based revenue growth guidance to 8.9%-9.3% from a prior 6.4%-8.4%, and above a 7.4% consensus. Credit Suisse has responded by upgrading to Outperform.
- IT outsourcing peers Cognizant (CTSH +5.3%), Accenture (ACN +2.6%), and Wipro (WIT +2.6%) have joined Infosys in outperforming. The Nasdaq is up 1.8%, and the S&P 1.6%.
- FQ3 details: Forex had a 4% impact on Infosys' FQ3 sales growth (8.5% vs. 12.5%). Gross margin fell to 37.2% from 38.7% a year ago. Operating expenses rose 11% Y/Y to $296M. Infosys ended FQ3 with $4.5B in cash, and no debt.
- CEO Vishal Sikka: "Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people. This combination helped us deliver encouraging results despite the traditional seasonality of the quarter and the additional headwinds..."
- COO Pravin Rao: "The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter ... We continue to simplify our policies and enable greater agility within the company, with the goal of boosting our productivity."
- Infosys' FQ3 results, earnings release
Dec. 17, 2015, 11:51 AM
- Though Accenture (NYSE:ACN) beat FQ1 revenue estimates (while missing on EPS), it's guiding for FQ2 revenue of $7.5B-$7.75B, mostly below a $7.74B consensus.
- FY16 guidance: The consulting/outsourcing giant still expects FY16 (ends Aug. '16) EPS of $$5.09-$5.24 (consensus is at $5.21) and free cash flow of $3.6B-$3.9B. FY16 local currency revenue growth guidance has been upped to 6%-9% from 5%-8%, but with forex now expected to have a 5% revenue impact (up from 4%), dollar-based revenue growth guidance is still at 1%-4% (consensus is at 3.6%).
- Bookings: FQ1 new bookings were flat Y/Y at $7.7B (forex had an 8% impact). Consulting bookings rose by $500M to $4.4B; outsourcing bookings fell by $500M to $3.3B. Peers such as IBM and HP have also seen soft outsourcing demand; cloud adoption is generally considered a culprit.
- Segment performance: Telecom, media, and tech revenue +1% Y/Y to $1.6B. Financial services +2% to $1.75B. Health & public service +4% to $1.42B. Products +3% to $1.99B. Resources (hurt by weak oil prices) -4% to $1.25B.
- Regional performance: North America revenue +9% to $3.76B. Europe -1% to $2.88B (+12% exc. forex). Growth markets -12% to $1.36B (+6% exc. forx).
- Financials: $658M was spent to buy back 6.5M shares. Gross margin fell 20 bps Y/Y to 32%, but spending controls allowed op. margin to rise 20 bps to 15.2%. GAAP costs/expenses rose by less than $100M Y/Y to $7.24B. Accenture ended FQ1 with $3.1B in cash, and almost no debt.
- Expectations were relatively high: Shares went into earnings less than a dollar away from a high of $109.86.
- Accenture's FQ1 results, earnings release
Dec. 17, 2015, 7:02 AM
- Accenture (NYSE:ACN): FQ1 EPS of $1.28 misses by $0.04.
- Revenue of $8.01B (+1.4% Y/Y) beats by $90M.
Dec. 16, 2015, 5:30 PM
Dec. 15, 2015, 5:54 PM
- Accenture (NYSE:ACN) has announced its third acquisition in six days. The target this time is Beacon Consulting Group, a Boston-based provider of consulting services to money managers.
- Accenture: "This acquisition significantly expands Accenture's asset management consulting capabilities and enhances its ability to help global investment managers, institutional investors and asset servicers gain an edge in increasingly competitive markets.
Beacon Consulting will become part of Accenture's Capital Markets practice, reinforcing its expertise and capabilities in asset management to help asset managers and other financial services companies design, build and operate their business."
- FQ1 results arrive on Thursday morning.
- Recent Accenture acquisitions
Dec. 10, 2015, 4:01 PM
- A day after announcing a deal to buy IoT-related industrial tech consulting firm Cimation, Accenture (ACN +0.3%) has announced it's buying Boomerang Pharmaceutical Communications, a Swiss online ad agency focusing on pharma, biotech, and medical device clients. As usual, terms are undisclosed.
- Boomerang has been around for 17+ years, has 80+ employeesand offices in Switzerland, France, Ireland, and New Jersey. The company will be added to Accenture's consulting arm; its purchase is declared to be "another step in Accenture's strategy of adding key skills and capabilities to deliver end-to-end services, including online promotion, content and campaign management, and marketing execution and operations."
- Over the last 12 months, Accenture has also bought Hong Kong-based digital ad agency owner PacificLink, Australian digital design/ad agency Reactive Media, and Swedish digital content/commerce consulting firm Brightstep.
Dec. 9, 2015, 2:50 PM
- Continuing its 2015 acquisition spree, Accenture (ACN -1.7%) is buying Cimation, an industrial asset/operations management services firm employing ~200 people. Terms are undisclosed.
- Accenture declares Cimation to be "known for its work in process automation, information technology (IT) and industrial control system (ICS) cyber security," and goes as far as to call it an industrial Internet of Things (IIoT) consulting company. GE, Intel, Cisco, IBM, and various other industrial/tech giants have unveiled IoT platforms over the last two years promising to help companies connect, monitor, control, and gather data from industrial hardware.
- Target verticals include oil/gas, pipelines, chemicals, metals, and mining. Accenture's FQ1 report arrives on the morning of Dec. 17.
- Recent Accenture acquisitions
Nov. 11, 2015, 10:58 AM
- "Our new price target values AWS at $63bn (5.3X 2016 revenue, a 25% premium to the SaaS comp group) and the core retail business at $300bn," writes Morgan Stanley's Brian Nowak, hiking his Amazon (AMZN +1.8%) target by $50 to a lofty $800.
- Nowak insists Amazon's North American retail ops are worth $256B at an 8% long-term margin, and its international retail ops $44B at a mere 2% margin. For reference, Wal-Mart (expected FY16 sales of $485B, 5.4% trailing 12 month op. margin) is currently worth $187B.
- He now sees AWS having a $240B addressable market (up from $150B in 2013), as it continues expanding beyond its core cloud infrastructure (IaaS) market into fields such as infrastructure software, databases, and CDN services. On-premise IT services firms such as Accenture (ACN +0.2%) and Computer Sciences (CSC -0.2%) are deemed vulnerable to cloud adoption, in spite of their attempts to benefit via cloud migration services - Accenture recently partnered with Amazon to offer AWS migration services.
- Amazon has made new highs, and is now up 116% YTD. Last month, the company reported AWS revenue rose 78% Y/Y in Q3 to $2.09B, with trailing 12 month revenue rising 65% to $6.9B.
- Last week: Amazon rallies to new highs following upbeat Druckenmiller remarks
Oct. 14, 2015, 11:56 AM
- Accenture (ACN -1%) says in a new report that cyberattacks will cost U.S. health systems $305B in cumulative lifetime revenues over the next five years. It forecasts that one in 13 patients (~25M) will have personal information stolen from IT systems over this time frame.
- Accenture managing director of global healthcare business Kaveh Safavi, M.D., J.D., says, "What most health systems don't realize is that many patients will suffer personal financial loss as a result of cyberattacks on medical information. If healthcare providers are complacent to safeguarding personal information they will risk losing substantial revenues and patients as a result of medical identity theft."
- According to the U.S. Department of Health and Human Services' Office for Civil Rights, almost 1.6M people had their medical information stolen from healthcare providers last year. Unfortunately, victims of medical identity theft have no automatic rights to recover their losses.
- Accenture projects that ~4M people will ultimately be victimized and pay out-of-pocket costs of ~$56B. It also says that if medical systems proactively address cybersecurity (hint: retain Accenture) it can reduce the risk of data breaches by 53%.
Accenture Plc is an investment holding company, which engages in the provision of management consulting, technology, and outsourcing services. It operates through the following segments: Communications, Media, and Technology; Financial Services; Health and Public Service; Products; Resources;... More
Industry: Management Services
Country: United States
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