Earnings Report: June 22, 2023

 Earnings Report: June 22, 2023

    Earnings season is starting to ramp up again, slowly but surely. This means we are going to become active in assessing our holdings earnings for this quarter. Today, Accenture reported earnings before the market opened. We will take a deep look into the earnings report and share our opinions on how the quarter went. 

Accenture plc ($ACN)- Accenture is a company that is based out of Dublin Ireland. They have an intent focus on consulting with all sorts of businesses ranging from technology firms to government work. The goal is to create tangible value at speed and scale. In regards to the earnings report, the company beat estimates on both the top and bottom line. The dividend was also increased, which is a key component to those who are using this stock for income purposes. The CEO commentary suggested that the quarter showed a lot of strengths for the company. She also attested to the rigor and discipline in which the company operates. The profitability slipped a little bit, with margins slipping down. This could be credited to the rising inflation and higher costs. It looks like the company implemented some optimization costs, which is something that we didn't see in last years operating expenses. It looks like the IT industry took a slip in terms of revenue from particular industry groups. This looks to be a continuous trend, as IT companies look to eliminate expenses. This can also be credited as the reason that the stock is tumbling a bit today. One thing that stands out, is the continuous strength of the balance sheet. It looks like the cash position saw an increase, whereas the debt decreased by a tiny bit. Overall, the company is in a really good position. I like two factors here, for the long-term. One of them being the increase in the dividend, and the second is the exceptional health of the balance sheet. The one thing that is a negative, is the shrinking operating margin, but this isn't too much of a concern to me. This company is in a wonderful position and an upside will be apparent in the coming years. 




Thank you for reading!


*Information was gathered from Accenture Quarterly Report, Yahoo Finance, and Google 

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