Accenture looks strong with results as per consensus: CLSA, Credit Suisse & Morgan Stanley
Accenture announced strong quarterly results and rating agencies have expressed positive sentiments about the company. Accenture announced 24 percent gain in revenue at $13.42 billion during the last quarter. The company has also given a strong guidance for the upcoming quarter and analysts are positive about the stock.
“Our results reflect the dedication and hard work of our 624,000 incredible people, who are laser-focused on creating tangible value for our clients, innovating with our ecosystem, and being the trusted partner of choice on our clients’ transformation journeys," said Julie Sweet Accenture’s CEO.
Credit Suisse has expressed positive sentiment regarding Accenture in its latest research note. Credit Suisse research note added that Accenture’s constant currency revenue growth of 21 percent in Q4 and 11 percent in last 12 months are at the upper end of its guidance. Credit Suisse has Infosys, TCS and HCL Tech as its preferred picks in the Indian IT space.
The company's constant currency growth guidance for FY22 is ahead of the pre-result consensus estimate, and the guided EBIT margin band implies expansion of 10-30 basis points, according to the brokerage. The constant currency revenue growth of 21 percent YoY is broadly in line with guidance, CLSA said.
Morgan Stanley has expressed confidence in Accenture after strong quarterly performance. The company's guidance for FY22 and commentary on demand should reinforce investors' conviction, according to the brokerage. However, Morgan Stanley said that supply-side challenges pose risks to its margin.