Accenture Plc (Germany) (NYSE: ACN)
Accenture is having an incredibly strong day in the market today, and for good reason. The company recently reported its earnings for the most recent quarter, blowing away all expectations. As a result, investors are incredibly excited about the stock. Today, we’ll talk about what we saw from earnings, how investors reacted to the news, and what we can expect to see from ACN moving forward. So, let’s get right to it…
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ACN Blows Away Earnings Expectations
As mentioned above, ACN reported its earnings for the second fiscal quarter before the opening bell this morning as expected. The earnings were overwhelmingly positive, blowing away consensus estimates with regard to how the company would perform. Here’s what we saw:
- Top Line Revenue – In terms of top-line revenue, Accenture came in well ahead of analyst expectations. In the quarter, it was expected that the company would produce revenue in the amount of $7.72 billion. However, ACN actually reported revenue in the amount of $7.95 billion.
- Earnings – Not only did ACN beat revenue expectations, it came in well ahead on earnings as well. During the quarter, analysts expected that the company would report earnings in the amount of $1.18 per share. However, the company actually reported earnings $0.16 ahead of estimates at $1.34 per share.
- Guidance – As if beating earnings and revenue expectations isn’t enough to get investors excited, the company also reported guidance that was overwhelmingly positive. In the third fiscal quarter, ACN is expecting to produce revenue in the range between $8.10 billion and $8.35 billion. This is at the high end of analyst expectations at $8.17 billion. For the full year, Accenture expects to report earnings in the range of $5.21 to $5.32 per share, a notch up from previous guidance between $5.09 and $5.24 per share.
How Investors Reacted To The News
As investors, one of the first things that we learn is that when positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Well, there are few pieces of news that are more positive in the eyes of investors than solid earnings and guidance. As a result, investors are excited and ACN is climbing in the market. Currently (10:25), the stock is trading at $110.98 per share after a gain of $3.32 per share or 3.08% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive movement out of ACN. The truth is that investors want to see growth, and solid earnings are a clear indication that a company is capable of growth. What makes this even more incredible is the fact that the European economy has been struggling in a big way, and even through that, ACN was able to produce solid gains. All in all, I’m expecting to see strong growth moving forward.
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What Do You Think?
Where do you think ACN is headed moving forward? Let us know your opinion moving forward!
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