Accenture Plc ACN on Thursday reported mixed results for its fiscal second quarter.
Accenture reported fiscal 2024 second-quarter revenue of $15.80 billion versus consensus of $15.84 billion, flat year-over-year in U.S. dollars and local currency. Revenue was slightly above the midpoint of the company’s forecast range of $15.40 billion – $16.00 billion. Adjusted EPS of $2.77 beat the consensus of $2.66, according to data from Benzinga Pro.
Accenture expects third-quarter revenue of $16.25 billion to $16.85 billion (vs. consensus of $17.01 billion), or negative (1)% – positive 3% in local currency, reflecting the assumption of a negative (1)% impact on foreign exchange compared to the third quarter of fiscal 2023.
Accenture expects fiscal 2024 adjusted earnings per share of $11.97 to $12.20 (prior $11.97 – $12.32) versus consensus of $12.24. For fiscal 2024, the company expects revenue growth of 1% to 3% (previously 2% – 5%) in local currency versus the expected $66.18 billion.
For fiscal 2024, the company continues to expect operating cash flow of $9.3 billion – $9.9 billion and free cash flow of $8.7 billion – $9.3 billion dollars.
Accenture shares fell 2.2% to trade at $337.39 on Friday.
These analysts made changes to their price targets on Accenture following the earnings announcement.
- Mizuho cut the price target on Accenture from $426 to $398. Mizuho analyst Dan Dolev reiterated a buy rating.
- RBC capital raised Accenture’s price target from $374 to $381. RBC Capital analyst Daniel Perlin maintained an Outperform rating.
- T. D. Cowen cut price target on Accenture from $363 to $350. TD Cowen analyst Bryan Bergin maintained Market Perform rating.
- Morgan Stanley cut price target on Accenture from $417 to $400. Morgan Stanley analyst James Faucette maintained an Overweight rating.
- BMO Capital cut Accenture’s target price from $385 to $375. BMO Capital analyst Keith Bachman maintained his Market Perform rating.
- Citigroup lowered Accenture’s target price from $430 to $400. Citigroup analyst Ashwin Shirvaikar maintained a Buy rating.
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