Accenture: Prospering Even in a Tough Environment

Accenture Ltd. (ACN) is not just sustaining itself in this tough environment, it is actually prospering, having recently reported excellent third-quarter results that were ahead of analyst estimates. After dipping lower in late 2007, the company's share price is once again in rally mode, producing excellent gains for the last 5 months.

Accenture Ltd. provides professional consulting services in a wide range of disciplines and industries. The company was founded in 1995, carries a market cap. of $24,5 billion and is based in Hamilton, Bermuda.

Another Strong Quarter

Accenture made investors happy on June 17 when the company reported very strong third-quarter results. Revenue was up to $6.10 billion, a 20% increase form the same period last year. Earnings per share were a record 74 cents, a 36% increase form last year.

Estimates Are Up

Accenture also boosted its full-year earnings guidance, now projecting earnings between $2.63 and $2.65 per share, up from the previous range of $2.55 to $2.60

Beating Estimates

This is the fourth time in four quarters that Accenture has surprised and beaten analyst estimates, having done so by an average of five cents, or 7.71%.

The company noted that it was able to boost its operating income 27% and expand its operating margin by .70% from the same period last year.

Multi-Regional Growth

Accenture experienced strong growth in a number of its business regions, including the Europe, Middle East and Africa region in which revenues were up 23% in US dollars to $2.16 billion. Domestically sales were up 17%.

William Green, Chairman and CEO of Accenture said, "Our excellent results in the third quarter include our highest-ever quarterly revenues and earnings per share. We see strong momentum in our business."

The Chart

As previously mentioned, shares of ACN have had a very solid year, advancing from $32 to a high-point of over $42. This stock is now within striking distance of its 52-week and all-time high at $44. Take a look at the chart below.

 

Comments

[User 138602]

just love this company ,ROE and ROI of around 60% the last time I checked , keep beating estimates and now a dividend of just over 1% for a start. I am sorry I didn t buy more when it was between $32 and $34.

[MD]

Concur, great company and outstanding performance in a tough market. It's been a "Magic Formula" stock for some time now. Clearly a top class IT consultant, and still buyable at today's prices with current momentum.

Steve
magicdiligence.com

[slim409]

Just bought this stock. It cam out of a sound base today and is being accumulated more than usual. Maybe funds are taking notice finally.