Accenture (NYSE:ACN) is based in Dublin, Ireland. The company combines its capabilities across numerous sectors to deliver tangible results for its clients. Accenture offers management consulting services in diverse segments. It also provides system integration consulting services and solutions. It serves numerous industries, and it has a strategic collaboration with Marriot International.
The company collaborates with some of the giants in the tech segment. In the last quarter, it announced a unique new business model with SAP. Through the newly formed business model, Accenture and SAP will develop integrated industry-specific and cloud-based solutions.
Accenture partnered with Salesforce.com to design a solution for Schneider Electric. The solution will be used by about 26,000 people in 100 countries. The initiative is the largest salesforce implementation in Europe.
Number at a Glance
In the last quarter, Accenture generated revenues of $7.1 billion, a 3% increase in local currency and about the midpoint of the company’s guiding range. Earnings per share were $1.03 compared to $1.0 on an adjusted basis in the second quarter of last year. The company recently announced a semi-annual cash dividend of $0.93 per share. This brings its total dividend payments for the year to $1.86 per share, a 15% increase over last year.
- Warning! GuruFocus has detected 4 Warning Signs with ACN. Click here to check it out.
- ACN 15-Year Financial Data
- The intrinsic value of ACN
- Peter Lynch Chart of ACN
Based on its performance for the first half of the year, the company has revised most of its metrics in its business outlook for the third quarter of fiscal 2014. Accenture now expects revenues to be in the range of $7.4 billion to $7.65 billion. It expects its net revenue for the full-year to be in the range of a 3% to 6% growth in local currency. It also expects its full-year earnings per share to be in the range of $4.50 to $4.62. In terms of cash flow, Accenture expects it to be in the range of $2.9 billion to $3.2 billion.
Other Growth Initiatives
One thing that sets Accenture apart is that it combines its capabilities in many sectors to assist clients. Recently, it signed a long-term agreement with Monte dei Paschi di Siena to offer services to enhance its competitiveness. Accenture expects the initiative to boost its revenue.
The company also partnered with Endesa, one of the world’s largest electric power companies. Accenture is supporting the roll-out of more than 13 million smart meters in Spain. The company is facilitating the expansion of smart metering operations and integrating existing billing systems.
Head to Head
Accenture faces a stiff competition from International Business Machines (NYSE:IBM) and Hewlett Packard (NYSE:HPQ). However, Accenture has a competitive advantage over rivals. It boasts of a strong booking going into the next quarter. This is fueled by an increasing demand for its systems integration and management consulting solutions.
Wings Across the World
Accenture ended the last quarter with a global headcount of about 289,000 people. The company has around 192,000 in its Global Delivery Network. In other words, it is an organization that spans numerous countries.
A Glance at Europe
The environment in Europe continues to be challenging. Still, Micron was able to sign agreements with Monte dei Paschi di Siena and Endesa. However, the company expects a revenue growth in countries like the U.K, Italy, Germany, and France in the near future.
The Asia Pacific market
Accenture experienced a strong demand for its products and services in the Asia/Pacific region. Consequently, it grew its revenues by 4% in the last quarter.
Accenture, like most prosperous companies, is diversified across many segments. It is therefore able to face the challenges in its business. Overall, it has a very good financial standing and is positioned to show improvements on the international level. I feel bullish that it will continue to provide a pocketful of returns to its investors in the near future.