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Why Accenture (ACN) International Revenue Trends Deserve Your Attention
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Did you analyze how Accenture (ACN - Free Report) fared in its international operations for the quarter ending August 2024? Given the widespread global presence of this consulting company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Upon examining ACN's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The company's total revenue for the quarter amounted to $16.41 billion, showing rise of 2.6%. We will now explore the breakdown of ACN's overseas revenue to assess the impact of its international operations.
A Look into ACN's International Revenue Streams
Of the total revenue, $5.64 billion came from EMEA during the last fiscal quarter, accounting for 34.4%. This represented a surprise of -1.65% as analysts had expected the region to contribute $5.73 billion to the total revenue. In comparison, the region contributed $5.78 billion, or 35.1%, and $5.3 billion, or 33.1%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Growth Markets contributed $2.8 billion in revenue, making up 17.1% of the total revenue. When compared to the consensus estimate of $2.94 billion, this meant a surprise of -4.64%. Looking back, Growth Markets contributed $2.86 billion, or 17.3%, in the previous quarter, and $3.13 billion, or 19.6%, in the same quarter of the previous year.
Prospective Revenues in International Markets
Wall Street analysts expect Accenture to report $17.09 billion in total revenue for the current fiscal quarter, indicating an increase of 5.3% from the year-ago quarter. EMEA and Growth Markets are expected to contribute 35% ($5.98 billion) and 16% ($2.74 billion) to the total revenue, respectively.
For the full year, a total revenue of $67.76 billion is expected for the company, reflecting an increase of 4.4% from the year before. The revenues from EMEA and Growth Markets are expected to make up 35.9% and 16.3% of this total, corresponding to $24.32 billion and $11.05 billion respectively.
Concluding Remarks
Accenture's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Over the past month, the stock has seen an increase of 2.3% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2.1%. The Zacks Computer and Technology sector, Accenture's industry group, has ascended 1.8% over the identical span. In the past three months, there's been an increase of 16.9% in the company's stock price, against a rise of 4.9% in the S&P 500 index. The broader sector has declined by 1% during this interval.
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Why Accenture (ACN) International Revenue Trends Deserve Your Attention
Did you analyze how Accenture (ACN - Free Report) fared in its international operations for the quarter ending August 2024? Given the widespread global presence of this consulting company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Upon examining ACN's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The company's total revenue for the quarter amounted to $16.41 billion, showing rise of 2.6%. We will now explore the breakdown of ACN's overseas revenue to assess the impact of its international operations.
A Look into ACN's International Revenue Streams
Of the total revenue, $5.64 billion came from EMEA during the last fiscal quarter, accounting for 34.4%. This represented a surprise of -1.65% as analysts had expected the region to contribute $5.73 billion to the total revenue. In comparison, the region contributed $5.78 billion, or 35.1%, and $5.3 billion, or 33.1%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Growth Markets contributed $2.8 billion in revenue, making up 17.1% of the total revenue. When compared to the consensus estimate of $2.94 billion, this meant a surprise of -4.64%. Looking back, Growth Markets contributed $2.86 billion, or 17.3%, in the previous quarter, and $3.13 billion, or 19.6%, in the same quarter of the previous year.
Prospective Revenues in International Markets
Wall Street analysts expect Accenture to report $17.09 billion in total revenue for the current fiscal quarter, indicating an increase of 5.3% from the year-ago quarter. EMEA and Growth Markets are expected to contribute 35% ($5.98 billion) and 16% ($2.74 billion) to the total revenue, respectively.For the full year, a total revenue of $67.76 billion is expected for the company, reflecting an increase of 4.4% from the year before. The revenues from EMEA and Growth Markets are expected to make up 35.9% and 16.3% of this total, corresponding to $24.32 billion and $11.05 billion respectively.
Concluding Remarks
Accenture's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Accenture, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing Accenture's Recent Stock Price Trends
Over the past month, the stock has seen an increase of 2.3% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2.1%. The Zacks Computer and Technology sector, Accenture's industry group, has ascended 1.8% over the identical span. In the past three months, there's been an increase of 16.9% in the company's stock price, against a rise of 4.9% in the S&P 500 index. The broader sector has declined by 1% during this interval.