Accenture(US:ACN) Benzingaยท2024-06-21 18:21Core Insights - Accenture Plc reported disappointing third-quarter earnings, with sales of $16.47 billion, slightly below analyst consensus of $16.55 billion, reflecting a 1% year-over-year decline in U.S. dollars but a 1.4% increase in local currency [1] - Adjusted EPS of $3.13 fell short of the analyst consensus of $3.15 [1] - The company achieved significant milestones in Generative AI, with $2 billion in sales year-to-date and $500 million in revenue year-to-date [1] - Accenture plans for fourth-quarter revenues between $16.05 billion and $16.65 billion, slightly below consensus of $16.56 billion, and expects fiscal 2024 adjusted EPS of $11.85 to $12.00, compared to consensus of $12.10 [1] Revenue and Earnings Guidance - Fourth-quarter revenue guidance is set at $16.05 billion to $16.65 billion, with a consensus of $16.56 billion [1] - Fiscal 2024 adjusted EPS guidance is revised to $11.85 to $12.00 from a prior range of $11.97 to $12.20, against a consensus of $12.10 [1] - Revenue growth for fiscal 2024 is expected to be between 1.5% and 2.5% in local currency, revised from a prior range of 1% to 3% [1] Analyst Reactions - Following the earnings report, Accenture shares increased by 1% to $309.13 [2] - BMO Capital reduced its price target from $375 to $350 while maintaining a Market Perform rating [2] - Susquehanna lowered its price target from $360 to $350, keeping a Neutral rating [2] - TD Cowen adjusted its price target from $294 to $293, maintaining a Hold rating [2]