The old saying “practice what you preach” holds truest for consulting companies, whose bread and butter is getting companies back on track. For Accenture (ACN), consistent growth over five quarters and double-digit growth in its most recent reporting shows its customers that the proof is in the pudding.
In this tough economy, companies look to consultants like Accenture to help them trim spending, use their resources better, invest in infrastructure and IT — whatever it takes to make it to the next quarter. Accenture’s services are far from cheap, but they’ve got a track record that demonstrates they know what they’re doing.
Just in the period since its first quarter 2012 reporting, the company has landed major contracts with the U.S. Department of Homeland Security to strengthen biometric, immigration and border management functions as well as with Hartford Financial Services Group (HIG) in an effort to improve product efficiency and reduce costs.
For the second quarter, the company anticipates net revenues of between $6.5 billion and $6.8 billion. During the first quarter, it nailed net revenues of $7.1 billion, up 17 percent on the year. Each of its five segments hit double-digit growth, as did each of its three global regions.
Despite record-breaking revenues and profit for the first quarter, Accenture expects full year revenues to come in between $28 billion and $31 billion, roughly 7 percent growth. The company has concerns about negative foreign exchange impacts on revenue, but history shows its forecasts are likely on the conservative side.
Goldman Sachs recently reaffirmed its buy rating, while JPMorgan Chase & Co. reaffirmed its overweight rating. JP Morgan has a price target of $64 on ACN with recent trading between $52 and $60.
Accenture next reports on or around March 26.
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