Accenture's Q3 Results Beat Street View, Outlook Raised (ACN)

Business consulting and outsourcing company Accenture Ltd. (ACN) said Friday that its third quarter profit and revenue both declined from the same period last year, but results were good enough to beat analyst expectations.

The Bermuda-based company reported fiscal third quarter net income of $444 million, or 68 cents per share, compared with $469.1 million, or 74 cents a share, in the year-ago period.

Revenue plunged 16% from year-ago levels, to $5.54 billion from $6.59 billion, hampered by unfavorable currency exchange rates.

On average, Wall Street analysts expected profits of 64 cents a share on revenue of $5.2 billion.

Based on the stronger-than expected results, Accenture raised its full-year profit outlook to a range of $2.67 to $2.70 per share, up from previous guidance of $2.60 to $2.67 per share. Wall Street currently expects a lower profit of $2.64 per share.

Accenture shares rose $1.21, or +3.8%, in morning trading Friday.

The Bottom Line

We had removed shares of ACN from our "Recommended" list on Oct.6, when the stock was trading at $35.19. The company has a 1.58% dividend yield, based on last night's closing stock price of $31.64. The stock has technical support in the $27 area. If the shares can gain on the upbeat guidance, we see the $34 mark as a near-term level of overhead resistance. We would remain on the sidelines for now.

Accenture Ltd. (ACN) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related terms: business, consulting, currency, dividend, investment opinion, profit, revenue, yield