Accenture (ACN) to Report Q4 Earnings: What's in the Cards?

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Accenture plc ACN is scheduled to report fourth-quarter fiscal 2019 results on Sep 26, before market open.

While the top line is likely to benefit from strength across all segments, the bottom line is expected to gain from higher revenues and operating results.

So far this year, shares of Accenture have gained 36.9% compared with 30.9% rise of the industry it belongs and 17.9% rise of the Zacks S&P 500 composite.

 

Let’s check out the expectations in detail.

Strength Across Segments to Boost Revenues

Strength across all the segments — Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources — is likely to drive Accenture’s revenues. The Zacks Consensus Estimate for fourth-quarter fiscal 2019 revenues is pegged at $11.07 billion, indicating growth of 9.1% year over year. Notably, the consensus estimate lies within the company guided range of $10.85-$11.15 billion. In third-quarter fiscal 2019, net revenues of $11.10 billion increased 4% year over year.

Going by segments, the consensus estimate for Communications, Media & Technology revenues is pegged at $2.32 billion, indicating year-over-year growth of 10.7%. The segment should benefit from strength in Software & Platforms across all geographic regions, led by North America. In third-quarter fiscal 2019, segment revenues of $2.25 billion increased 3% year over year.

The consensus mark for Financial Services revenues is pegged at $2.19 billion, indicating year-over-year growth of 9.1%. The segment should benefit from strength in Insurance across all geographic regions and banking & capital markets in Growth Markets, which is likely to be partially offset by a decline in banking & capital Markets in Europe. In third-quarter fiscal 2019, segment revenues of $2.20 billion decreased 2% year over year.

The consensus estimate for Health & Public Service revenues is pegged at $1.78 billion, indicating year-over-year growth of 4.2%. The expected uptick is likely to come from growth in Public Service in North America and Europe and Health in North America.In third-quarter fiscal 2019, segment revenues of $1.82 billion increased 4% year over year.

The consensus estimate for Products revenues is pegged at $3.11 billion, indicating year-over-year growth of 11.3%. Segmental revenues are expected to be driven by strength in Life Sciences across all geographic regions and Consumer Goods, Retail & Travel Services in Europe and Growth Markets.In third-quarter fiscal 2019, segment revenues of $3.08 billion increased 4% year over year.