Accenture (ACN) Stock Gains on Earnings Beat

NEW YORK (TheStreet) -- Shares of Accenture (ACN) were gaining 3% to $100.75 Thursday morning after the technology services company beat analysts' estimates for earnings in the fiscal third quarter.

Accenture reported earnings of $1.30 a share for the fiscal third quarter, above analysts' estimates of $1.23 a share for the quarter. Revenue grew 0.4% year over year to $7.77 billion for the quarter, above analysts' estimates of $7.55 billion.

The company said it expects to report revenue of $7.45 billion to $7.7 billion for the fiscal fourth quarter, compared to analysts' estimates of $7.58 billion for the quarter.

"We are very pleased with our financial results for the third quarter," Chairman and CEO Pierre Nanterme said. "We delivered 10 percent revenue growth in local currency, which was broad-based across the business, and we gained significant market share. New bookings of $8.5 billion bring us to $25.5 billion for the first three quarters of the year, demonstrating the continued strong demand for our services"

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, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins."

You can view the full analysis from the report here: ACN Ratings Report

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