What to Expect When Accenture (ACN) Reports Its Earnings Results Tomorrow

NEW YORK (TheStreet) -- Accenture Plc. (ACN) is scheduled to report its fiscal 2015 first quarter earnings results before the market open on Thursday. Analysts are expecting the management consulting, technology, and outsourcing services company to post a year-over-year increase in earnings and revenue.

For the most recent quarter Accenture is expected to report earnings of $1.20 per share, on revenue of $7.69 billion.

Shares of Accenture are higher by 0.65% to $83.41 in mid-morning trading on Wednesday.

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For the fiscal 2014 first quarter Accenture said its earnings were $1.15 per diluted share, an 8% increase over the previous year, while revenue grew by 2% to $7.4 billion for the quarter.

Separately, TheStreet Ratings team rates ACCENTURE PLC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate ACCENTURE PLC (ACN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ACN's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 4.5% when compared to the same quarter one year prior, going from $671.00 million to $701.02 million.
  • Net operating cash flow has increased to $1,649.21 million or 29.29% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.41%.
  • You can view the full analysis from the report here: ACN Ratings Report

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