Accenture's Q4 2023 Results: Mixed Earnings and Concerns Over Declining Bookings

Baird's David Koning lowered their price target on Accenture (NYSE: ACN) by 3% from $332 to $322 on 2023/09/29. The analyst maintained their Hold rating on the stock.

Accenture, the global management consulting and technology services company, recently released its fourth-quarter and full-year 2023 earnings report. While the results were mixed, with in-line top and bottom lines, declining bookings raised concerns among analysts. In fact, one analyst described the bookings as "about the worst since 2009."

For the fourth quarter of 2023, Accenture reported earnings per share (EPS) of $2.71, surpassing the Zacks Consensus Estimate of $2.62 and showing a 4.2% increase compared to the same quarter in 2022. The company's revenue for the quarter stood at $15.99 billion, roughly in line with expectations and representing a 3.7% growth from the prior year.

Looking at the full-year performance, Accenture achieved EPS of $11.67, a 9% increase from the previous year. The company's revenue for the fiscal year reached $64.11 billion, surpassing the previous year's figure by 4.1%.

However, despite these positive numbers, management's guidance for the upcoming year fell below consensus. For the first quarter of 2024, Accenture expects revenue in the range of $15.85 billion to $16.45 billion. Looking at the full fiscal year 2024, the company projects EPS between $11.97 and $12.32, with revenue growth expected to be in the range of 2% to 5%. The projected operating cash flow for the year is estimated to be between $9.3 billion and $9.9 billion.

In response to the earnings report and guidance, Baird analyst David Koning lowered their price target on Accenture from $332 to $322, representing a 3% decrease. Despite the downward revision, Koning maintained a Hold rating on the stock.

Koning's adjustment to their price target is in line with other analysts who also revised their outlook on Accenture. Piper Sandler's Arvind Ramnani and TD Cowen's Bryan Bergin both lowered their price targets by 3.8%, from $312, while BMO Capital's Keith Bachman lowered their price target by 2.8%, from $360. All three analysts maintained their Hold ratings on the stock.

Currently, 57.1% of top-rated analysts rate Accenture as a Strong Buy or Buy, while 42.9% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Analysts' consensus forecast for Accenture's upcoming year predicts earnings per share (EPS) of $13.03. If their predictions hold true, the company's next yearly EPS will experience a 14.7% increase on a year-over-year basis.

Since the release of Accenture's latest quarterly report, the stock price has increased by 2.1%. On a year-over-year basis, the stock has risen by 18.9%, outperforming the S&P 500, which has shown a growth of 17.8%.

Baird analyst David Koning, who recently revised their price target on Accenture, is ranked in the top 9% among Wall Street analysts by WallStreetZen. With an average return of 6% and a win rate of 57.7%, Koning specializes in the Communication Services and Technology sectors, among others.

Accenture, founded in 1989 and headquartered in Dublin, Ireland, provides management consulting, technology, and outsourcing services to various industries, including communications, electronics, technology, media, entertainment, banking, capital markets, insurance, healthcare, chemicals, energy, forest products, metals and mining, and utilities sectors.

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