Earnings Preview: Computer Sciences – Analyst Blog
Computer Sciences Corporation (CSC) is scheduled to announce its third quarter 2012 results on February 8, 2012, and we witness a negative bias in the analysts’ estimates.
Second Quarter Recap
The company reported modest second quarter 2012 results with earnings per share (EPS) of 94 cents, comprehensively beating the Zacks Consensus Estimate of 68 cents. The company’s second quarter 2012 revenues inched up 0.79% year over year to $3.97 billion.
The company witnessed year-over-year revenue growth in the Business Solutions & Services (BSS) and the Managed Service Sector (MSS) segments. Within the commercial segment, strong revenue growth in the BSS segment was somewhat mitigated by the weak MSS performance.
Across the three lines of business, new business awards in the reported quarter were $6.6 billion. North American Public Sector (NPS) contributed $3.1 billion, MSS registered $2.6 billion, and Business Solutions & Services closed $0.9 billion of new business.
CSC posted an operating loss margin of 1.89%, deteriorating considerably from the operating profit margin of 7.75% in the year-ago quarter. The margin was negatively impacted by higher cost of services and a significant goodwill impairment charge during the quarter.
The company exited the quarter with $978.0 million in cash and cash equivalents, down from $1.67 billion reported in the previous quarter. CSC had a total debt balance of $3.26 billion with a debt-to-capitalization ratio of 40.8%.
While guiding for fiscal 2012, the company included the contribution from the iSoft acquisition. CSC expects new business awards in excess of $17 billion; revenues of approximately $16.5-$16.7 billion; operating margin of 6.00% and EPS of approximately $4.05-$4.10. Free cash flow is expected to be equal to or greater than 90% of net income for the year.
Agreement of Analysts
Out of the 12 analysts providing estimates for the third quarter, only one analyst lowered the estimate over the last 30 days. Out of the 10 analysts covering the stock for fiscal 2012, one analyst lowered the estimate in the last 30 days, while none moved in the opposite direction. Similarly, for fiscal 2013, out of the 13 analysts tracking the stock, three analysts lowered their estimates in the last 30 days, while none moved in the opposite direction.
The company has recently resumed discussions with NHS and Cabinet officials regarding the memorandum of understanding (MOU), which included proposed re-negotiated terms of the contract. However, the company later on informed that neither the MOU nor the most recently discussed contract amendment would be approved by the UK government.
As a result of this new development, CSC would have to realize a material impairment in the third quarter of 2012 on its net investment in the contract. This impairment could be equal to CSC's net investment for the contract ($1.5B as of Nov. 30, 2011) and may also include some other costs, leading CSC to lower its previously provided fiscal year 2012 guidance.
Analysts are also of the opinion that issues other than the NHS contract may pose a considerable challenge to CSC. These include the Audit Committee investigation into CSC's accounting practices initiated in May 2011, which will lead to significant legal and accounting costs.
Secondly, the company is also entangled with a class action lawsuit by multiple shareholders who allege violations of securities laws in connection with business representation. A decision on the same issue is pending, and may result in potential losses if it goes against the company.
Magnitude of Estimate Revisions
The magnitude of revisions is also substantial since CSC reported its second quarter results. Overall, estimates for the upcoming quarter have gone down from $1.17 to 57 cents in the last 90 days.
For fiscal 2012, estimates have decreased to $3.68 from $4.30 in the last 90 days. Moreover, for fiscal 2013, the estimates have gone down from $4.62 to $3.71 over the same period.
Recommendation
We are apprehensive about the intense competition in the IT and cloud computing space from both big and small players such as Accenture (ACN) and Hewlett-Packard Company (HPQ). Moreover, with government orders expected to dry up to a certain extent and the NHS problem persisting, lingering legal issues are also making it difficult for Computer Sciences.
Moreover, the demand for the company’s products in Europe is not encouraging for the upcoming quarters.
The company has a Zacks #5 Rank, implying a short-term Strong-Sell rating.
ACCENTURE PLC (ACN): Free Stock Analysis Report
COMP SCIENCE (CSC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
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Zacks Investment Research
Earnings Preview: Computer Sciences – Analyst Blog
Computer Sciences Corporation (CSC) is scheduled to announce its third quarter 2012 results on February 8, 2012, and we witness a negative bias in the analysts’ estimates.
Second Quarter Recap
The company reported modest second quarter 2012 results with earnings per share (EPS) of 94 cents, comprehensively beating the Zacks Consensus Estimate of 68 cents. The company’s second quarter 2012 revenues inched up 0.79% year over year to $3.97 billion.
The company witnessed year-over-year revenue growth in the Business Solutions & Services (BSS) and the Managed Service Sector (MSS) segments. Within the commercial segment, strong revenue growth in the BSS segment was somewhat mitigated by the weak MSS performance.
Across the three lines of business, new business awards in the reported quarter were $6.6 billion. North American Public Sector (NPS) contributed $3.1 billion, MSS registered $2.6 billion, and Business Solutions & Services closed $0.9 billion of new business.
CSC posted an operating loss margin of 1.89%, deteriorating considerably from the operating profit margin of 7.75% in the year-ago quarter. The margin was negatively impacted by higher cost of services and a significant goodwill impairment charge during the quarter.
The company exited the quarter with $978.0 million in cash and cash equivalents, down from $1.67 billion reported in the previous quarter. CSC had a total debt balance of $3.26 billion with a debt-to-capitalization ratio of 40.8%.
While guiding for fiscal 2012, the company included the contribution from the iSoft acquisition. CSC expects new business awards in excess of $17 billion; revenues of approximately $16.5-$16.7 billion; operating margin of 6.00% and EPS of approximately $4.05-$4.10. Free cash flow is expected to be equal to or greater than 90% of net income for the year.
Agreement of Analysts
Out of the 12 analysts providing estimates for the third quarter, only one analyst lowered the estimate over the last 30 days. Out of the 10 analysts covering the stock for fiscal 2012, one analyst lowered the estimate in the last 30 days, while none moved in the opposite direction. Similarly, for fiscal 2013, out of the 13 analysts tracking the stock, three analysts lowered their estimates in the last 30 days, while none moved in the opposite direction.
The company has recently resumed discussions with NHS and Cabinet officials regarding the memorandum of understanding (MOU), which included proposed re-negotiated terms of the contract. However, the company later on informed that neither the MOU nor the most recently discussed contract amendment would be approved by the UK government.
As a result of this new development, CSC would have to realize a material impairment in the third quarter of 2012 on its net investment in the contract. This impairment could be equal to CSC's net investment for the contract ($1.5B as of Nov. 30, 2011) and may also include some other costs, leading CSC to lower its previously provided fiscal year 2012 guidance.
Analysts are also of the opinion that issues other than the NHS contract may pose a considerable challenge to CSC. These include the Audit Committee investigation into CSC's accounting practices initiated in May 2011, which will lead to significant legal and accounting costs.
Secondly, the company is also entangled with a class action lawsuit by multiple shareholders who allege violations of securities laws in connection with business representation. A decision on the same issue is pending, and may result in potential losses if it goes against the company.
Magnitude of Estimate Revisions
The magnitude of revisions is also substantial since CSC reported its second quarter results. Overall, estimates for the upcoming quarter have gone down from $1.17 to 57 cents in the last 90 days.
For fiscal 2012, estimates have decreased to $3.68 from $4.30 in the last 90 days. Moreover, for fiscal 2013, the estimates have gone down from $4.62 to $3.71 over the same period.
Recommendation
We are apprehensive about the intense competition in the IT and cloud computing space from both big and small players such as Accenture (ACN) and Hewlett-Packard Company (HPQ). Moreover, with government orders expected to dry up to a certain extent and the NHS problem persisting, lingering legal issues are also making it difficult for Computer Sciences.
Moreover, the demand for the company’s products in Europe is not encouraging for the upcoming quarters.
The company has a Zacks #5 Rank, implying a short-term Strong-Sell rating.
ACCENTURE PLC (ACN): Free Stock Analysis Report
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Nordstrom Reports Higher Comps – Analyst Blog
One of the leading fashion specialty retailers in the United States, Nordstrom Inc. (JWN), once again reported a robust growth in its comparable store sales for the four-week period ended January 28, 2012. The January results marked the 28th consecutive month of comparable-store sales growth.
The company’s January same-store sales grew by 5% compared with 4.8% in the four-week period ended January 29, 2011. Total retail sales climbed 13.2% to $688 million from $607 million for the four-week period ended January 29, 2011. Strong sales of handbags and cosmetics along with better performance in the South and Midwest facilitated the company to post solid January sales results.
Fourth Quarter 2011 Sales
The company’s comparable sales for the fourth quarter increased 7.1% from the prior-year quarter. Total retail sales during the period surged 12.5% to $3.17 billion compared with a total retail sales of $2.82 billion in the prior-year quarter.
Fiscal 2011 Sales
Moreover, Nordstrom's fiscal 2011 comparable sales grew by 7.2% year over year. Total retail sales for the period increased 12.7% to $10.50 billion from $9.31 billion reported in the prior-year period.
As of January 28, 2012, Nordstrom had 117 Nordstrom full-line stores, 104 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1 clearance store. Same-store sales at Nordstrom stores (including Nordstrom full-line stores and Direct) increased 5.3% in January, while Nordstrom Rack reported a rise of 1.3% for the four-week period ended January 28, 2012.
During the fourth quarter, the company’s same-store-sales increased 8.4% at Nordstrom Stores and 2.2% at Nordstrom Rack. For fiscal 2011, the company reported an increase of 8.2% in same-store sales at Nordstrom stores and a rise of 3.7% at Nordstrom Rack.
Peer Performance
One of Nordstrom’s competitors, Gap Inc.’s (GPS) registered a decline of 4% in same-store sales in January 2012, while its net sales came in at $833 million compared with $843 million in the year-ago period.
Conclusion
Nordstrom remains focused on expanding its store network to drive top-line growth. However, a sluggish discretionary spending environment, intense competition and exposure to seasonal fluctuations will keep us on the sidelines.
Based in Seattle, Washington, Nordstrom Inc. is a leading fashion specialty retailer in the U.S., offering high quality apparel, shoes, cosmetics and accessories for men, women and kids. The company offers both branded and private label merchandise, as well as a private label card, two Nordstrom VISA credit cards and debit cards for Nordstrom purchases.
Nordstrom maintains a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains Neutral.
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Nordstrom Reports Higher Comps – Analyst Blog
One of the leading fashion specialty retailers in the United States, Nordstrom Inc. (JWN), once again reported a robust growth in its comparable store sales for the four-week period ended January 28, 2012. The January results marked the 28th consecutive month of comparable-store sales growth.
The company’s January same-store sales grew by 5% compared with 4.8% in the four-week period ended January 29, 2011. Total retail sales climbed 13.2% to $688 million from $607 million for the four-week period ended January 29, 2011. Strong sales of handbags and cosmetics along with better performance in the South and Midwest facilitated the company to post solid January sales results.
Fourth Quarter 2011 Sales
The company’s comparable sales for the fourth quarter increased 7.1% from the prior-year quarter. Total retail sales during the period surged 12.5% to $3.17 billion compared with a total retail sales of $2.82 billion in the prior-year quarter.
Fiscal 2011 Sales
Moreover, Nordstrom's fiscal 2011 comparable sales grew by 7.2% year over year. Total retail sales for the period increased 12.7% to $10.50 billion from $9.31 billion reported in the prior-year period.
As of January 28, 2012, Nordstrom had 117 Nordstrom full-line stores, 104 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1 clearance store. Same-store sales at Nordstrom stores (including Nordstrom full-line stores and Direct) increased 5.3% in January, while Nordstrom Rack reported a rise of 1.3% for the four-week period ended January 28, 2012.
During the fourth quarter, the company’s same-store-sales increased 8.4% at Nordstrom Stores and 2.2% at Nordstrom Rack. For fiscal 2011, the company reported an increase of 8.2% in same-store sales at Nordstrom stores and a rise of 3.7% at Nordstrom Rack.
Peer Performance
One of Nordstrom’s competitors, Gap Inc.’s (GPS) registered a decline of 4% in same-store sales in January 2012, while its net sales came in at $833 million compared with $843 million in the year-ago period.
Conclusion
Nordstrom remains focused on expanding its store network to drive top-line growth. However, a sluggish discretionary spending environment, intense competition and exposure to seasonal fluctuations will keep us on the sidelines.
Based in Seattle, Washington, Nordstrom Inc. is a leading fashion specialty retailer in the U.S., offering high quality apparel, shoes, cosmetics and accessories for men, women and kids. The company offers both branded and private label merchandise, as well as a private label card, two Nordstrom VISA credit cards and debit cards for Nordstrom purchases.
Nordstrom maintains a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains Neutral.
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J.B. Hunt Raises Dividend – Analyst Blog
J.B. Hunt Transport Services (JBHT) recently announced that its board of directors has increased the quarterly cash dividend payment by 7.7% to 14 cents per share paid previously in 2011. This represents an annual dividend of 56 cents per share. The increased dividend will be paid on February 24 to shareholders of record on February 14.
Despite the ongoing upheaval in the truck market, J.B. Hunt continues to maintain its yearly growth in shareholder returns. The company paid quarterly dividends of 10 cents, 11 cents and 12 cents per share in 2008, 2009 and 2010, respectively. Further, it increased the quarterly dividend payment to 13 cents per share for 2011.
Besides dividend payment, the company also repurchased 6 million shares for a total cost of $246 million in fiscal 2011 and initiated a new share repurchase program of $500 million. As of December 31, 2011, the company had $503 million remaining in its share repurchase authorization.
We believe that the increasing returns to shareholders follows from stronger freight demand, thanks to the company’s diversified business model and improving price mix.
In the recently concluded fourth quarter of 2011, J.B. Hunt gave a superior earnings performance that surpassed the consensus estimate and grew approximately 23% from the year-ago level. The current growth trend in freight rates arising from a tighter truckload market along with the growing demand for intermodal and higher fuel surcharges remained the key growth drivers for the company.
However, volatility in fuel prices remains a key concern for J.B. Hunt. The company’s fuel surcharge revenue program enables it to recover the majority of fuel price hikes from customers. However, the company incurs costs when fuel price increases cannot be fully recovered due to engines being idled during cold or warm weather or due to empty or out-of-route miles that cannot be billed to customers.
Additionally, the changing environment in the trucking industry due to highway-to-rail conversion also has an adverse impact on the company’s truck segment. J.B. Hunt also remains exposed to competition from transportation and logistics companies like YRCW Worlwide (YRCW) and Con-Way Inc. (CNW).
Consequently, we are maintaining our long-term Neutral recommendation on J.B. Hunt, with a Zacks Rank of #3 (Hold).
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Zacks Investment Research
J.B. Hunt Raises Dividend – Analyst Blog
J.B. Hunt Transport Services (JBHT) recently announced that its board of directors has increased the quarterly cash dividend payment by 7.7% to 14 cents per share paid previously in 2011. This represents an annual dividend of 56 cents per share. The increased dividend will be paid on February 24 to shareholders of record on February 14.
Despite the ongoing upheaval in the truck market, J.B. Hunt continues to maintain its yearly growth in shareholder returns. The company paid quarterly dividends of 10 cents, 11 cents and 12 cents per share in 2008, 2009 and 2010, respectively. Further, it increased the quarterly dividend payment to 13 cents per share for 2011.
Besides dividend payment, the company also repurchased 6 million shares for a total cost of $246 million in fiscal 2011 and initiated a new share repurchase program of $500 million. As of December 31, 2011, the company had $503 million remaining in its share repurchase authorization.
We believe that the increasing returns to shareholders follows from stronger freight demand, thanks to the company’s diversified business model and improving price mix.
In the recently concluded fourth quarter of 2011, J.B. Hunt gave a superior earnings performance that surpassed the consensus estimate and grew approximately 23% from the year-ago level. The current growth trend in freight rates arising from a tighter truckload market along with the growing demand for intermodal and higher fuel surcharges remained the key growth drivers for the company.
However, volatility in fuel prices remains a key concern for J.B. Hunt. The company’s fuel surcharge revenue program enables it to recover the majority of fuel price hikes from customers. However, the company incurs costs when fuel price increases cannot be fully recovered due to engines being idled during cold or warm weather or due to empty or out-of-route miles that cannot be billed to customers.
Additionally, the changing environment in the trucking industry due to highway-to-rail conversion also has an adverse impact on the company’s truck segment. J.B. Hunt also remains exposed to competition from transportation and logistics companies like YRCW Worlwide (YRCW) and Con-Way Inc. (CNW).
Consequently, we are maintaining our long-term Neutral recommendation on J.B. Hunt, with a Zacks Rank of #3 (Hold).
CON-WAY INC (CNW): Free Stock Analysis Report
HUNT (JB) TRANS (JBHT): Free Stock Analysis Report
YRC WORLDWD INC (YRCW): Free Stock Analysis Report
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Zacks Investment Research
When "Insider" Greed Is Good – Weekend Wisdom
What do Michael Dell and Sam Susser have in common?Both are CEOs who bought shares of their own companies in 2011 just before the share prices moved higher.
You have probably heard of Michael Dell, the CEO of Dell Corporation. In 2010 and 2011, he made a big statement by buying $250 million worth of shares in Dell, including a single $150 million transaction, even though he already owns a gazillion shares. Dell shares were up 5% within 5 days of the news of his $150 million buy.
But who is Sam Susser?
He's the CEO of Susser Holdings Corporation, which operates convenience stores in Texas, New Mexico, Oklahoma and Louisiana. On Dec 7, 2011 he bought 25,000 shares worth $543,750. It was his largest open market share purchase since October 2006, when he bought 68,750 shares.
Since the day of his purchase on Dec 7 through the close on Feb 2, Susser Holdings stock has risen 14.1%.
Clearly it is beneficial for investors to follow insider buying activity. But digging below the surface to find the obscure purchases by folks like Sam Susser is a worthwhile pursuit. Read on to learn how to do this on a regular basis.
Insider Buying Sends a Strong Signal
Why would these two CEOs spend their own hard-earned cash on their own companies' stock when they already own a ton of shares already?
Greed.
Pure and simple.
---------------------------------------------------------------------------------
Insider Trading Edge Until Sunday
Insiders must report major buys and sells of their own companies' stocks. Tests show that if you follow selected officers and transactions, you can actually TRIPLE Zacks #1 gains. Even during the Great Recession, such gains reached double digits.
Don't worry, this approach to insider trading is legal and ethical. Extreme demand closed it to new investors last September, but it's now open to you again until Sunday, February 5.
---------------------------------------------------------------------------------
The opportunity to make more money motivates people -- even people who are already billionaires like Michael Dell.
If top insiders are buying, it's because they know something very good is going on at the company. Maybe it is a new product. Or contract. Or pending merger. Whatever the reason, they are very confident that shares will be on the rise. After all, who would buy more stock in a company if they knew it was sinking???
Buy When the Insiders Buy
When high level insiders buy, they are required to report the purchases to the SEC within 48 hours of the trade. The trade then becomes public information.
Hedge funds and other professional investors routinely use this information to get an edge on their trades.
For most of us, though, it's not easy to get access to the insider information. While the media will trumpet huge insider buys like Michael Dell's $150 million purchase, did you hear anything about Sam Susser's $543,750 purchase?
The challenge is getting easy and reliable access to all the insider trades and then figuring out which ones to buy.
Where to Find the Insider Buys
Anyone can go on the SEC website and get the insider trading information, but it's time consuming to search by individual companies.
Some investment firms collect the insider buying data and can provide it to you as a weekly list. Have you ever seen one of those lists? The sheer number of companies can be overwhelming.
And then when you get the list, if there are 100 companies on it, how do you know which companies are the best to invest in?
We'll Give You the Trades
To solve this problem, our Zacks research team developed a strategy that monitors selected insider buying activity at companies that already show strong earnings momentum and attractive valuations. Tests show that this Insider Trader approach can triple the performance of even Zacks #1 Rank Strong Buy stocks. It even produced impressive profits during the heart of the bear market in 2008.
Today, you're welcome to share these insider stocks, but access must be limited. Unusually high demand from the Zacks community forced us to close the strategy to new investors last September, and it must close again Sunday, February 5.
Learn more now about Zacks Insider Trader>>
Best,
Tracey Ryniec
Tracey is Zacks' value strategist and is the Editor in Charge of our Insider Trader.
To read this article on Zacks.com click here.
Zacks Investment Research
When "Insider" Greed Is Good – Weekend Wisdom
What do Michael Dell and Sam Susser have in common?Both are CEOs who bought shares of their own companies in 2011 just before the share prices moved higher.
You have probably heard of Michael Dell, the CEO of Dell Corporation. In 2010 and 2011, he made a big statement by buying $250 million worth of shares in Dell, including a single $150 million transaction, even though he already owns a gazillion shares. Dell shares were up 5% within 5 days of the news of his $150 million buy.
But who is Sam Susser?
He's the CEO of Susser Holdings Corporation, which operates convenience stores in Texas, New Mexico, Oklahoma and Louisiana. On Dec 7, 2011 he bought 25,000 shares worth $543,750. It was his largest open market share purchase since October 2006, when he bought 68,750 shares.
Since the day of his purchase on Dec 7 through the close on Feb 2, Susser Holdings stock has risen 14.1%.
Clearly it is beneficial for investors to follow insider buying activity. But digging below the surface to find the obscure purchases by folks like Sam Susser is a worthwhile pursuit. Read on to learn how to do this on a regular basis.
Insider Buying Sends a Strong Signal
Why would these two CEOs spend their own hard-earned cash on their own companies' stock when they already own a ton of shares already?
Greed.
Pure and simple.
---------------------------------------------------------------------------------
Insider Trading Edge Until Sunday
Insiders must report major buys and sells of their own companies' stocks. Tests show that if you follow selected officers and transactions, you can actually TRIPLE Zacks #1 gains. Even during the Great Recession, such gains reached double digits.
Don't worry, this approach to insider trading is legal and ethical. Extreme demand closed it to new investors last September, but it's now open to you again until Sunday, February 5.
---------------------------------------------------------------------------------
The opportunity to make more money motivates people -- even people who are already billionaires like Michael Dell.
If top insiders are buying, it's because they know something very good is going on at the company. Maybe it is a new product. Or contract. Or pending merger. Whatever the reason, they are very confident that shares will be on the rise. After all, who would buy more stock in a company if they knew it was sinking???
Buy When the Insiders Buy
When high level insiders buy, they are required to report the purchases to the SEC within 48 hours of the trade. The trade then becomes public information.
Hedge funds and other professional investors routinely use this information to get an edge on their trades.
For most of us, though, it's not easy to get access to the insider information. While the media will trumpet huge insider buys like Michael Dell's $150 million purchase, did you hear anything about Sam Susser's $543,750 purchase?
The challenge is getting easy and reliable access to all the insider trades and then figuring out which ones to buy.
Where to Find the Insider Buys
Anyone can go on the SEC website and get the insider trading information, but it's time consuming to search by individual companies.
Some investment firms collect the insider buying data and can provide it to you as a weekly list. Have you ever seen one of those lists? The sheer number of companies can be overwhelming.
And then when you get the list, if there are 100 companies on it, how do you know which companies are the best to invest in?
We'll Give You the Trades
To solve this problem, our Zacks research team developed a strategy that monitors selected insider buying activity at companies that already show strong earnings momentum and attractive valuations. Tests show that this Insider Trader approach can triple the performance of even Zacks #1 Rank Strong Buy stocks. It even produced impressive profits during the heart of the bear market in 2008.
Today, you're welcome to share these insider stocks, but access must be limited. Unusually high demand from the Zacks community forced us to close the strategy to new investors last September, and it must close again Sunday, February 5.
Learn more now about Zacks Insider Trader>>
Best,
Tracey Ryniec
Tracey is Zacks' value strategist and is the Editor in Charge of our Insider Trader.
To read this article on Zacks.com click here.
Zacks Investment Research
Another Deal Win for Accenture – Analyst Blog
Management and technology consulting major Accenture plc (ACN) announced a deal with 12 southeast Minnesota counties for the development of a human services delivery model focused on shifting them from a county-based to a regional approach. This is partially funded by the Bush Foundation.
Accenture would be instrumental in laying out a strategic plan, including the business case, redesigned operating model and implementation roadmap for the development of a multi-county framework for human services delivery.
Although the terms of the deal were not disclosed, we believe that this is an innovative venture, which may also work for other counties of the US, thereby generating a new line of business for the company.
Moreover, the company also introduced “Accenture Citizen Self-Service Portal Version 2.0,” which will enable the citizens to electronically access their caseworkers as well as the benefit application process. The portal is expected to provide greater self-sufficiency for social service beneficiaries, thus facilitating further agency expansion and opening up a new channel for citizens to interact with government case workers in a secure environment.
This software is specially designed for public service to help meet the needs of social service agencies and the people served by those agencies. This will enhance the company’s Public Service Platform and will help public agencies better manage human services delivery costs.
The deal flow and new business initiatives continue to flow for Accenture, and we expect the momentum to continue based on the company’s decision to continue to invest in priority industries (such as communications and public services) and emerging markets, where it will focus on further building its brand value. We believe that the company’s confidence in adopting such a strategy in the backdrop of lingering global concerns is powered by its five consecutive quarters of outperformance.
However, increasing competition from IBM Corp. (IBM), a strained spending environment and Accenture’s broad European exposure may temper growth prospects to some extent.
Currently, Accenture has a short-term Hold rating, denoted by the Zacks #3 Rank.
ACCENTURE PLC (ACN): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
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Zacks Investment Research
Another Deal Win for Accenture – Analyst Blog
Management and technology consulting major Accenture plc (ACN) announced a deal with 12 southeast Minnesota counties for the development of a human services delivery model focused on shifting them from a county-based to a regional approach. This is partially funded by the Bush Foundation.
Accenture would be instrumental in laying out a strategic plan, including the business case, redesigned operating model and implementation roadmap for the development of a multi-county framework for human services delivery.
Although the terms of the deal were not disclosed, we believe that this is an innovative venture, which may also work for other counties of the US, thereby generating a new line of business for the company.
Moreover, the company also introduced “Accenture Citizen Self-Service Portal Version 2.0,” which will enable the citizens to electronically access their caseworkers as well as the benefit application process. The portal is expected to provide greater self-sufficiency for social service beneficiaries, thus facilitating further agency expansion and opening up a new channel for citizens to interact with government case workers in a secure environment.
This software is specially designed for public service to help meet the needs of social service agencies and the people served by those agencies. This will enhance the company’s Public Service Platform and will help public agencies better manage human services delivery costs.
The deal flow and new business initiatives continue to flow for Accenture, and we expect the momentum to continue based on the company’s decision to continue to invest in priority industries (such as communications and public services) and emerging markets, where it will focus on further building its brand value. We believe that the company’s confidence in adopting such a strategy in the backdrop of lingering global concerns is powered by its five consecutive quarters of outperformance.
However, increasing competition from IBM Corp. (IBM), a strained spending environment and Accenture’s broad European exposure may temper growth prospects to some extent.
Currently, Accenture has a short-term Hold rating, denoted by the Zacks #3 Rank.
ACCENTURE PLC (ACN): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research