Don't Overlook Accenture (ACN) International Revenue Trends While Assessing the Stock

Core Insights - Accenture's total revenue for the quarter ending May 2024 was $16.47 billion, reflecting a decline of 0.6% year-over-year [2] - The company's international operations are crucial for assessing its financial health and growth potential, especially in the context of a global economy [1] International Revenue Breakdown - Growth Markets contributed 17.3% of total revenue, amounting to $2.86 billion, which was a decline of 8.28% compared to expectations of $3.11 billion [3] - Europe generated $5.78 billion, accounting for 35.1% of total revenue, slightly below the consensus estimate of $5.87 billion [3] - In the previous quarter, Growth Markets and Europe contributed $2.82 billion (17.9%) and $5.6 billion (35.4%) respectively [3] Future Revenue Expectations - Analysts project total revenue of $16.26 billion for the current fiscal quarter, indicating a 1.7% increase year-over-year [4] - Expected contributions from Growth Markets and Europe for the current quarter are 18.6% ($3.03 billion) and 35.9% ($5.84 billion) respectively [4] - For the full year, total revenue is anticipated to reach $65.12 billion, a 1.6% increase from the previous year, with Growth Markets and Europe expected to contribute 17.8% ($11.6 billion) and 35.5% ($23.11 billion) respectively [4] Market Sentiment and Stock Performance - Accenture's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of revenue trends [5] - The stock has increased by 2.7% over the past month, matching the rise of the Zacks S&P 500 composite, but has seen a decline of 10.9% over the past three months [8] - The Zacks Rank currently indicates a 4 (Sell) rating for Accenture, suggesting potential underperformance relative to the broader market [7]