Citigroup (NYSE: C) re-iterated its buy rating on Accenture Ltd (NYSE: ACN), citing moves in European currencies and lowered pipeline demand. Citi’s equity research firm also lowered its earnings estimates for 2010 and 2011
Citi analyst wrote, “We are lowering our estimates on ACN due to the impact of currency moves (Euro, GBP). Most investors likely have this already factored into their revenues and EPS expectations, but probably not on bookings. Meanwhile, positive pipeline and CY10 demand commentary could offset tepid headline numbers somewhat, in terms of the earnings call on 3/25. However, a real positive catalyst could actually be Accenture’s investor day on 4/8, when we believe we could get a more meaningful look into ACN’s longer-term revenue and margin outlook – such a look could effectively showcase ACN’s attractive “total return” metrics and drive the stock higher.”
“We are lowering our F2Q and FY10 revenue and EPS estimates, primarily due to the weakening of the Euro and Pound, vs. the USD. Our fiscal 2Q10 EPS is lower by $0.01 (to $0.62) and our FY10 estimate is now $2.70, down from $2.75 (both are now in line with consensus). Our FY 2011 estimate is now $3.04, down from $3.06, as our 2011 model builds off of a lower 2010 base…We are lowering our FY10 bookings estimate to $23.7 billion from $24.1 billion.”
