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Accenture plc (ACN), a global professional services company with a market cap of $206.3 billion, delivers strategy, consulting, technology, and operations solutions across various industries. The Dublin, Ireland-based company's fiscal Q4 2024 ends in August 2024.
Prior to the event, analysts anticipate the IT consulting giant to report a profit of $2.77 per share, up 2.2% from $2.71 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. In Q3, ACN reported an EPS of $3.13, marginally missing the consensus estimate.
For fiscal 2024, analysts expect ACN to report EPS of $11.95, up 2.4% from $11.67 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to surge by a 5.3% margin, reaching $12.58.
On a YTD basis, ACN's shares have dropped nearly 6%, significantly underperforming the S&P 500 Index's ($SPX) around 15.2% gain and the S&P 500 Technology Sector SPDR (XLK)'s 11.4% increase over the same period.
Despite narrowly missing its Q3 earnings estimates, Accenture’s stock surged 7.3% on Jun. 20 due to a significant increase in operating profit margins and a 22% rise in new bookings, including notable growth in generative AI. However, the stock dipped marginally on Jul.10 due to uncertainty surrounding its acquisition of Cientra, a technology firm, as the company did not disclose the deal’s price or terms. This lack of transparency contributed to a nearly 1% decline in its share price.
Analysts' consensus rating on Accenture stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 26 analysts covering the stock, opinions include 15 "Strong Buys," one "Moderate Buy," and 10 "Holds."
The average analyst price target for ACN is $345.71, suggesting a potential upside of just 5% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
