High Performance, Not Delivered - Accenture Drops 7%
What you need to know before the US markets open 🇺🇸
Hey Global Investor, here's what you need to know before the US markets open.
🔥 Winvesta won the Fintech of the Year for Asia Pac in the Barclays Entrepreneur Awards 2020, and is nominated for the Global Award.
You've been an integral part of the Winvesta community, and the reason we've been nominated for the People's Choice Award. But there’s not much time left: vote for us while you still can.
Market Snapshot 📈
S&P 500 (Thursday Close) 3,246.59 +9.67 (0.30%)
NASDAQ (Thursday Close) 10,672.27 +39.28 (0.37%)
FTSE 100 (5 PM IST) 5787.68 -35.10 (0.60%)
NIFTY 50 (Today's Close) 11,050.25 +244.70 (2.26%)
USDINR (5 PM IST) 73.71 (1 Year +4.12%)
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.
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: 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% HOLD 29% SELL 7%
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 (GM -0.78%)
Upping the 'Ant'e: Ant launches blockchain-based cross-border trade platform ahead of $35 billion IPO
Later Today 🕒
6.00 PM IST: Durable goods orders
6.00 PM IST: Core capital goods orders
8.30 PM IST: Chicago Fed President Charles Evans speaks
Fun Fact of The Day 🌞
Saint Lucia is the only country in the world named after a woman.
You can start investing in US stocks with platforms like Winvesta. Get an account in as little as 15 minutes and start building your global portfolio today.