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Accenture will report earnings on Thursday, before the market opens. Will Accenture meet expectation
June 18, 2022


Accenture Plc (NYSE: ACN)

Accenture will report earnings on Thursday, June 23, 2022, before the market opens. The consensus earnings estimate is for $2.84 per share on revenue of $14.98 billion: and the Whisper number is much the same at $1.67 per share.

Accenture is a global professional services company. It specializes in digital, cloud and security but advises companies in more than 40 different industries and 120 countries. Accenture stock can call three-quarters of the S&P 500 a client.

Shares of Accenture have gained 2.4% over the past four weeks to close the last trading session at $275.38, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $388.62 indicates a potential upside of 38.2%.

However, take in to consideration those earnings estimates may be coming down in the face of Fed tightening. And the central bank has more than demonstrated its resolve by front-loading the tightening process. Monetary policy works with a lag, but there is no question that higher interest rates will lead to slower economic growth which, in turn, will show up in moderating corporate revenue and earnings growth.

Also, the global economic picture is bleak, investor confidence is low, and most assets are off to the worst start of the year ever.

Companies are still navigating COVID-19 protocols. This includes keeping employees safe as well as navigating the business environment that COVID-19 is constantly disrupting. On top of that, companies need to deal with massive supply chain issues related to COVID-19 and the Russia/Ukraine war. There is also record inflation, which presents an issue for product-based companies.

Plenty of companies have struggled through the past few years. Accenture’s business, on the other hand, continued without a hitch.

In a unique way, a world filled with uncertainty is actually a boon to Accenture’s business. This is because Accenture stock makes money by helping clients navigate this uncertainty. The more questions there are in the world the more reasons there is to call Accenture.

In 2021, Accenture reported annual revenue of $50.53 billion, up 14% YoY. It also reported a net income of $5.91 billion, up 15% YoY. More recently, the company reported FY Q2 2022 revenue of $15.05 billion, up 24% YoY. It also reported a net income of $1.63 billion, up 13% YoY.

Accenture also returned quite a bit of cash to investors last quarter. In total, it repurchased $1.7 billion worth of shares and paid $617 million in dividends. This equates to a quarterly dividend of $0.97 per share, up 10% from last year. As a general rule of thumb, stock buybacks and dividends are signs that a business is performing well.

Despite all this good news, Accenture stock is down 30% so far this year. But, it’s up 115% over the past five years.

Short interest has decreased by 4.4% and overall earnings estimates have been revised higher since the company's last earnings release.

According to the issued ratings of 24 analysts in the last year, the consensus rating for Accenture stock is Buy based on the current 7 hold ratings and 17 buy ratings for ACN. The average twelve-month price prediction for Accenture is $374.51 with a high price target of $460.00 and a low price target of $309.00.

Will Accenture meet expectations?

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Weekly Options News Updates

Weekly options news updates provide you with the latest information on the state of the stock market as it relates to weekly options trading!

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Best of Trading,
Ian Harvey
Weekly Options USA

A Bear Market – No Problem!

Make the Most of the Situation and Profit!

The Fed implemented its biggest rate hike in 28 years of 0.75 percentage points in an effort to control inflation. The bear market continues after a brief rally failed on Wednesday, with investors remaining concerned about what is looming ahead for the economy.

But, even in a bear market, there are plenty of opportunities to profit - if you know where to look and apply certain simple strategies.

Determining which stocks will continue in a downward spiral, those that will stabilize and deciding on stocks that are looking like a buy now, can be greatly beneficial in returning great profits.

Here at Weekly Options USA we provide you access to everything you need to profit from trading weekly options.

Successfully trading weekly options takes a lot of knowledge, research and analysis, but the good news is that you don’t have to do it all yourself. Weekly Options USA uses the proven strategies and methods that have been implemented by Ian Harvey’s team for well over a decade.

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Weekly Options USA

Jabil Earnings Top Expectations!

Jabil Inc (NYSE: JBL)

Following on from our article “Jabil Earnings Expectations” that was live on Monday, June 13.

This morning contract manufacturer Jabil Inc (NYSE: JBL) beat Wall Street's targets for its fiscal third quarter thanks to strong electronics business. It also guided higher for the current quarter and full fiscal year.

The St. Petersburg, Fla.-based company earned an adjusted $1.72 a share on sales of $8.33 billion in the quarter ended May 31. Analysts expected Jabil earnings of $1.62 a share on sales of $8.22 billion. On a year-over-year basis, Jabil earnings increased 32% while sales advanced 15%.

For the current quarter, Jabil forecast adjusted earnings of $2.14 a share on sales of $8.4 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of $2.01 a share on sales of $8.27 billion.

"The effectiveness of our business model was on display during Q3, as the team delivered strong revenue and earnings results," said Chairman and CEO Mark Mondello. "Our diversified approach has been designed to be flexible and resilient as we aim to deliver for both our customers and stakeholders. During the quarter, I believe the team did an outstanding job rising to the challenge," he added.

"As we look ahead, we see solid demand in key areas of our business," Chief Executive Mark Mondello said. "Given this ongoing momentum, we now expect FY22 revenue to be in the neighborhood of $32.8 billion and core EPS to be $7.45."

Jabil was up slightly pre-market despite a very negative market situation.

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Ian Harvey
Weekly Options USA

Coinbase Global Woes!

Equities wobbled on Wednesday and showed some resilience in the face of aggressive FOMC policy action.

Bitcoin’s price fluctuated after the Federal Reserve announced further monetary tightening on Wednesday, falling to as low as $20,270 in the minutes after the Fed's statement. But roughly an hour after the announcement, the cryptocurrency was changing hands at $21,444.

This had a roll-on effect on Coinbase Global Inc (NASDAQ: COIN).

In a widely anticipated move, the central bank announced that it will raise the fed-funds rate, the interest rate at which depository institutions trade balances held at the central bank, by three-quarters of a percentage point, or 75 basis points.

As well, several Wall Street analysts have lowered their expectations for Coinbase Global after the cryptocurrency exchange announced plans to cut its workforce by 18%. On Tuesday, the fintech announced plans to cut about 1,100 jobs, which is expected to result in around $40 million to $45 million in restructuring costs. Coinbase head count at the end of second quarter is expected to remain flat at around 5,000 employees, analysts said.

Jason Kupferberg, a Bank of America research analyst, said the job cuts underscore Coinbase management’s ability to be nimble amid a difficult crypto environment.

John Todaro, a senior research analyst at Needham, lowered his revenue expectations for Coinbase this year to $3.49 billion from $4.54 billion. Todaro also anticipates second-quarter volumes to decline 39% quarter over quarter and foresees another 7% drop in third quarter volumes on lower retail investor sentiment that he expects to rebound in Q4.

Kyle Voigt, a Keefe, Bruyette & Woods analyst, said Coinbase’s personnel reductions were expected. He warned the company “may need to revisit the size of their reduction in force should the volume environment continue to deteriorate further from here,” according to a note. He maintained a “market perform” for the stock and a $75 price target.

Dan Dolev, a Mizuho senior fintech and payments analyst, also cut his revenue estimates for Coinbase this year to $3.6 billion from about $4.8 billion. Dolev maintained his “neutral” rating but cut his price target to $45 from $60.

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Weekly Options USA

Is It Time To Buy The Stock Market Dip?

All three major equity indices reversed positive starts on Tuesday to trade in the red. Trending tickers show big swings for various stocks for various reasons.

The generally bearish action on Tuesday dovetailed with more notable weakness to kick off the week.

U.S. stocks sank into a bear market on Monday, with the S&P ending the session more than 20% below its recent record high in January. The apparent catalyst for the sell-off was a surprisingly hot Consumer Price Index (CPI) on Friday that stoked fresh rate hike fears.

The Nasdaq Composite fell 4.7% in the session, ending at its lowest level since September 2020. The S&P 500 dropped 3.9%.

Investors ready for a buying opportunity to emerge in these volatile markets may need to keep waiting.

And waiting!

“U.S. stocks have suffered their biggest year-to-date losses since at least the 1960s. That’s ignited calls to ‘buy the dip’,” Wei Li, BlackRock Investment Institute global chief investment strategist, wrote in a note Monday. “We pass, for now.”

Diving in on the dip now is likely premature, as BlackRock and others pointed out.

Dave Lutz, head of ETF Trading at Jones Trading, noted the market sell-off has broadened out significantly, with the vast majority of both index components and asset classes moving down in tandem.

BlackRock’s team, likewise, thinks it’s too early to make such a call for a bottom and bounce in the markets, and offers three reasons for the take.

First, Wall Street’s earnings estimates have yet to fully reflect the impact inflationary pressures will have on company profits.

Second, even after the year-to-date drawdown, stocks still aren’t cheap. “Valuations haven’t really improved after accounting for a lower earnings outlook and a faster expected pace of rate rises,” Li said.

And third, the risk that the Fed will hike interest rates too quickly to try to curb inflation and derail the economy in the process has risen, BlackRock said. And as long as the market believes that the Fed may sacrifice the economy for lower inflation, there will be a cap on where equities can go, Li suggested.

“We don’t see a sustained rally until the Fed explicitly acknowledges the high costs to growth and jobs if it raises rates too high,” Li said. “That would be a signal to us to turn positive on equities again tactically.”

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Best of Trading,
Ian Harvey
Weekly Options USA

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