These Analysts Revise Their Forecasts On Accenture After Q2 Results

Accenture Plc ACN reported mixed results for its fiscal second quarter on Thursday.

Accenture reported second-quarter fiscal 2024 sales of $15.80 billion compared with the consensus of $15.84 billion, flat Y/Y in U.S. dollars and local currency. Revenues were slightly above the midpoint of the company’s guided 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 revenues of $16.25 billion – $16.85 billion (versus consensus of $17.01 billion), or negative (1)% – positive 3% in local currency, reflecting the company’s assumption of a negative (1)% foreign-exchange impact compared with the third quarter of fiscal 2023.

Accenture expects fiscal 2024 adjusted EPS of $11.97 – $12.20 (prior $11.97 – $12.32) versus consensus of $12.24. For fiscal 2024, the company expects revenue growth of 1% – 3% (prior 2% – 5%) in local currency vs. $66.18 billion consensus.

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.

Accenture shares fell 2.2% to trade at $337.39 on Friday.

These analysts made changes to their price targets on Accenture following earnings announcement.

• Mizuho cut the price target on Accenture from $426 to $398. Mizuho analyst Dan Dolev reiterated a Buy rating.
• RBC Capital raised the price target on Accenture from $374 to $381. RBC Capital analyst Daniel Perlin maintained an Outperform rating.
• TD Cowen cut the price target on Accenture from $363 to $350. TD Cowen analyst Bryan Bergin maintained a Market Perform rating.
• Morgan Stanley cut the price target on Accenture from $417 to $400. Morgan Stanley analyst James Faucette maintained an Overweight rating.
• BMO Capital slashed the price target on Accenture from $385 to $375. BMO Capital analyst Keith Bachman maintained a Market Perform rating.
• Citigroup lowered the price target on Accenture from $430 to $400. Citigroup analyst Ashwin Shirvaikar maintained a Buy rating.

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