High Performance, Not Delivered - Accenture Drops 7%
High Performance, Not Delivered - Accenture Drops 7%
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Market Snapshot 📈
S&P 500Â (Thursday Close) 3,246.59Â +9.67Â (0.30%)
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Accenture Stock Slides as Earnings and Outlook Fail To Meet Wall Street Consensus.
The Dublin-based tech-consulting giant’s fiscal 2021 guidance missed expectations as did its Q4 revenue and earnings. Its shares dropped 7% as a result.
What is Happening? A mixed day for Accenture Plc, which reported fiscal Q4 earnings that were below analyst estimates. The company continues to grow its outsourcing business; on the other hand, the tech consulting business has suffered due to the pandemic.
Key Numbers:
Revenue: $10.84B vs. $10.93B expected, down 2% for the quarter.
Adjusted EPS: $1.70 vs. $1.73 expected.
Accenture’s consulting services segment generated $5.68B, down 8% from the previous quarter. The outsourcing business contributed $5.15B, up 6%.
Accenture’s CFO, KC McClure, expects a tepid first half in FY2021, with the company returning to pre-Covid growth rates in the second half.
In line with this, the company issued FY21 earnings guidance in the $7.80-$8.10 range, below Wall Street’s expectation of $8.13 a share. Similarly, revenue growth is anticipated to be around 3.5%, against a consensus of 5.2%.
Market Reaction:Â Accenture announced it is increasing the dividend per share and expanding its buyback plan. Yet the shares fell 7.04% to close at $214.42. The stock is up around 4% YTD.
Accenture Snapshot 📈
ACN $214.42 -16.23 (-7.04%)
Analyst Rating (28 Ratings) BUY 64%Â Â HOLD 29% Â SELL 7%
Newsworthy 📰
Big Event: Amazon’s fall hardware event: the 13 biggest announcements (AMZN +0.66%)
Charging it Up: GM energizes China line-up with electric micro car (GMÂ -0.78%)
Upping the 'Ant'e: Ant launches blockchain-based cross-border trade platform ahead of $35 billion IPO
Later Today 🕒
6.00Â PM IST: Durable goods orders
6.00Â PM IST: Core capital goods orders
8.30 PM IST:Â Chicago Fed President Charles Evans speaks
Fun Fact of The Day 🌞
Saint Lucia is the only country in the world named after a woman.
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