Advertisement
Canada markets closed
  • S&P/TSX

    22,167.03
    +59.95 (+0.27%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CAD/USD

    0.7387
    +0.0014 (+0.19%)
     
  • CRUDE OIL

    83.11
    +1.76 (+2.16%)
     
  • Bitcoin CAD

    95,875.46
    +2,290.91 (+2.45%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,254.80
    +42.10 (+1.90%)
     
  • RUSSELL 2000

    2,124.55
    +10.20 (+0.48%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ futures

    18,465.00
    -38.75 (-0.21%)
     
  • VOLATILITY

    13.01
    +0.23 (+1.80%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6843
    +0.0038 (+0.56%)
     

Will Accenture plc's (NYSE:ACN) Earnings Grow In The Next 12 Months?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

After Accenture plc's (NYSE:ACN) earnings announcement in February 2019, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 10% in the upcoming year compared with the past 5-year average growth rate of 7.7%. Currently with trailing-twelve-month earnings of US$4.1b, we can expect this to reach US$4.5b by 2020. Below is a brief commentary around Accenture's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Accenture

How will Accenture perform in the near future?

Over the next three years, it seems the consensus view of the 24 analysts covering ACN is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ACN's earnings growth over these next few years.

NYSE:ACN Past and Future Earnings, May 5th 2019
NYSE:ACN Past and Future Earnings, May 5th 2019

This results in an annual growth rate of 9.0% based on the most recent earnings level of US$4.1b to the final forecast of US$5.4b by 2022. This leads to an EPS of $9.47 in the final year of projections relative to the current EPS of $6.46. Margins are currently sitting at 10%, which is expected to expand to 11% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Accenture, I've compiled three key aspects you should look at:

ADVERTISEMENT
  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is Accenture worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Accenture is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Accenture? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.