Accenture: Nothing 'New' Here, Strong Operating Results And Impressive Top Line Growth
- Accenture reported Q4 2018 results that beat the top and bottom line estimates.
- Accenture's main growth driver (i.e., the New) experienced strong growth in 2018 and investors should expect more of the same in the years ahead.
- I plan to stay long ACN. What are your thoughts?
On September 27, 2018, Accenture ($ACN) reported better-than-expected Q4 2018 earnings and strong top line growth but the market was not impressed, as shown by the fact that the stock finished the trading day down almost 3%. However, ACN shares are still outperforming the broader market over the first nine-plus months of 2018.
The stock was under pressure because management's forward guidance fell short of estimates but, in my opinion, the bull case for this unique technology company is stronger than ever. Specifically, Accenture's most recent operating results show that its main business ("the New," which makes up digital, cloud, and security-related services) has a strong growth profile.
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