ACN - Embedded Expectations Analysis - 2021 02 18
Accenture plc (ACN:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 27.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their digital transformation consulting, bookings demand, and margin expansionSpecifically, management is confident they are launching a new growth strategy that will deliver 360-degree value to their clients and they can help clients achieve faster transformation through trust, experience, speed, and scale. Furthermore, they are confident they can improve the customer experience for retirement savings plans, they can successfully execute Halliburton's digital transformation, and they can simultaneously redo their clients' supply chain and finance functions while reducing cost and digitizing their processes. Moreover, management is confident revenue outperformance was driven by broad-based over-delivery across markets, services, and industries and that 50% of revenue came from seven industries which were less impacted by the pandemic. They are also confident they delivered strong EPS, they were able to expand their overall gross margin, and that their bookings were strong across industries. In addition, they are confident they have been investing in Industry X.0 for quite some time and consulting demand was primarily driven by the cloud
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