Accenture's Annual Forecast and Share Price Increase

  •   24/06/2021 - 15h06
  •   HARMANT Adeline

Accenture shares rose sharply this morning after the announcement of its quarterly results and, above all, the raising of its targets for the current year. In addition, the group announced good news regarding its agreement to acquire Exton Consulting. Let's take a look at these two important news for the group.

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Accenture's Annual Forecast and Share Price Increase

Accenture share price rises after target increase:

This morning, Accenture shares jumped on the markets and even reached new highs on Wall Street. Indeed, this value was boosted by the increase of the annual objectives of the group. The company, which specializes in management consulting, technology services and outsourcing services, has just raised its 2021 EPS target to between $9.07 and $9.16 on revenue growth of 10 to 11%.

As for operating margin, the target has been set at 15.1%. It should also be noted that for the third fiscal quarter, the group recorded EPS of around $2.40 compared to $1.90 a year earlier and for revenues of $13.26 billion, up 21% and above the consensus of $12.79 billion. Finally, the group also declared a dividend of $0.88 per share for this quarter, up 10% year-on-year.

The group is currently benefiting from the fact that many companies have adopted a hybrid work model in this post-pandemic period. According to analysts and specialists in this sector, the demand for IT consulting services has not been so high for nearly 20 years and it should remain high for a long time.

 

An agreement to acquire Exton Consulting :

Also on the morning of June 24, 2021, Accenture Group also announced an agreement to acquire Exton Consulting, a strategy and management consulting firm specializing in financial services in Paris. The latter had nearly signed a tie-up with Cognizant at the end of June 2018.

This new strategic acquisition made by Accenture aims to strengthen the group in strategy consulting to financial services. Recall that in January 2020, Accenture had announced the creation of Accenture Strategy & Consulting which is one of the internal divisions resulting from its reorganization.

Thus, the acquisition of Exton by this group undoubtedly demonstrates the concentration of the market given that very large technology players such as the Accenture group or Onepoint are currently seeking to make strategic acquisitions in the field of consulting firms. This is certainly what analysts think when asked about this transaction and following the publication of this press release this morning.