Accenture plc Just Recorded A 5.3% EPS Beat: Here's What Analysts Are Forecasting Next
Accenture plc (NYSE:ACN) shareholders are probably feeling a little disappointed, since its shares fell 9.9% to US$338 in the week after its latest second-quarter results. The result was positive overall - although revenues of US$16b were in line with what the analysts predicted, Accenture surprised by delivering a statutory profit of US$2.63 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Accenture
Taking into account the latest results, Accenture's 24 analysts currently expect revenues in 2024 to be US$65.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 5.2% to US$11.77. In the lead-up to this report, the analysts had been modelling revenues of US$66.2b and earnings per share (EPS) of US$11.81 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$386, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Accenture analyst has a price target of US$440 per share, while the most pessimistic values it at US$292. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Accenture's revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Accenture is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$386, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Accenture going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Accenture .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
