Accenture Beats on Both Top and Bottom Lines

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Accenture (NYS: ACN) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Accenture beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share increased significantly.


Gross margins dropped, operating margins increased, and net margins improved.

Revenue details
Accenture booked revenue of $7.26 billion. The 18 analysts polled by S&P Capital IQ expected sales of $6.66 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $6.50 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.97. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.86 per share. GAAP EPS of $0.97 for Q2 were 29% higher than the prior-year quarter's $0.75 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.2%, 30 basis points worse than the prior-year quarter. Operating margin was 12.3%, 40 basis points better than the prior-year quarter. Net margin was 8.9%, 120 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.11 billion. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $28.27 billion. The average EPS estimate is $3.84.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,256 members rating the stock outperform and 62 members rating it underperform. Among 393 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 382 give Accenture a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Accenture is outperform, with an average price target of $62.03.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Accenture. The Motley Fool has a disclosure policy.

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