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Accenture earnings preview: Wall St sees broad-based growth in Q1

Management consulting firm Accenture (ACN) is reporting first-quarter results on Thursday, December 20, before the opening bell. Wall Street expects to see broad-based growth across all segments and throughout operating regions due to higher demand for its products and services.

Total revenue is expected to jump 10% to $10.43 billion, while earnings per share is projected to grow 2.8% to $1.84 during the first quarter.

Analysts predict that revenues from all the segments would improve during this period, with the highest growth expected in the Communications, Media & Technology unit as well as the Products unit. Meanwhile,  the Financial Services segment is expected to record the slowest growth during the first quarter.

Accenture Q4 2018 earning infographic

The Dublin-headquartered company has a history of beating earnings estimates. During the prior sequential quarter, the company reported earnings of $1.58 per share, surpassing the Street consensus by 3 cents.  Meanwhile, revenue of $10.1 billion was broadly in line with Wall Street estimates.

Accenture shares are trading almost flat since the start of this year. In the trailing 52-week period, the stock is up a modest 0.8%.

It’s time for Accenture to reap the dividends of digital push

On the other hand, analysts continue to stay bullish on the stock with an average rating of Moderate Buy. Ten out of 16 analysts covering the stock recommend Buy rating. ACN has an average 12-month price target of $185.38, which is at a 21% upside from its close on Monday.

 

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