Accenture (ACN) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - Accenture (ACN) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results having a significant impact on its near-term stock price [1][2]. Earnings Expectations - The earnings report is expected to be released on December 18, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The Zacks Consensus Estimate predicts quarterly earnings of $3.74 per share, reflecting a year-over-year increase of 4.2%, with revenues projected at $18.56 billion, up 4.9% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.08% lower, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Accenture is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.53%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat [8][10]. - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 has shown a nearly 70% success rate for predicting positive surprises [10]. Historical Performance - In the last reported quarter, Accenture was expected to post earnings of $2.98 per share but delivered $3.03, resulting in a surprise of +1.68% [13]. - Over the past four quarters, Accenture has beaten consensus EPS estimates three times [14]. Conclusion - Accenture does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].