Accenture Plc reported mixed results for its fiscal second quarter on Thursday. The company announced sales of $15.80 billion, slightly below the consensus of $15.84 billion. However, adjusted earnings per share of $2.77 beat the consensus of $2.66.
For the third quarter, Accenture expects revenues of $16.25 billion – $16.85 billion, reflecting a negative (1)% – positive 3% growth in local currency. The company also adjusted its fiscal 2024 EPS guidance to $11.97 – $12.20, below the consensus of $12.24.
Despite the mixed results, analysts made changes to their price targets on Accenture following the earnings announcement. Mizuho cut the price target from $426 to $398, RBC Capital raised it from $374 to $381, TD Cowen lowered it from $363 to $350, Morgan Stanley reduced it from $417 to $400, BMO Capital slashed it from $385 to $375, and Citigroup lowered it from $430 to $400.
Accenture shares fell 2.2% to trade at $337.39 on Friday. 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 for fiscal 2024.
In conclusion, while Accenture’s results may have been mixed, analysts remain optimistic about the company’s future prospects. Investors will be keeping a close eye on how the company navigates the challenges ahead and capitalizes on new opportunities in the market.
