Accenture First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Accenture (NYSE:ACN) will unveil its latest earnings on Wednesday, December 19, 2012. Accenture is a global management consulting, technology services, and outsourcing company.

Accenture Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.04 per share, a rise of 8.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.01. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.04 during the last month. For the year, analysts are projecting net income of $4.27 per share, a rise of 11.2% from last year.

Past Earnings Performance: Last quarter, the company saw both a profit and a mean estimate of net income of 88 cents per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 5.5% to $578.3 million (88 cents a share) from $611.9 million (91 cents a share) the year earlier, meeting analyst expectations. Revenue rose 1.6% to $7.29 billion from $7.17 billion.

Wall St. Revenue Expectations: On average, analysts predict $7.31 billion in revenue this quarter, a rise of 3.4% from the year-ago quarter. Analysts are forecasting total revenue of $29.51 billion for the year, a rise of 5.9% from last year’s revenue of $27.86 billion.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 6.1% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.55 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.51 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 9.9% to $12.59 billion while liabilities rose by 6.8% to $8.11 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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