How reliable are ACN's earnings forecasts historically?

Accenture's earnings forecasts have shown a generally reliable trend, with the company consistently surpassing or meeting earnings expectations. Historical analysis reveals the following key points: 1. **Consistent Performance**: Accenture has exceeded consensus EPS estimates two times over the last four quarters, indicating a reliable track record of performance. 2. **Revenue Accuracy**: Similarly, the company has surpassed consensus revenue estimates three times over the last four quarters, suggesting accuracy in forecasting revenues. 3. **Earnings Surprise**: The company's earnings surprise was -0.70% for the latest quarter, which is a negative sign, but a previous quarter showed a positive surprise of 6.21%. This indicates that while there can be variations, Accenture often delivers earnings that are in line with or above expectations. 4. **Analyst Confidence**: The company's full-year Zacks Consensus Estimates call for earnings of $12.72 per share and revenue of $68.55 billion, representing year-over-year changes of +6.44% and +5.64%, respectively. This suggests that analysts are optimistic about Accenture's future performance, which adds to the reliability of the earnings forecast. 5. **Market Valuation**: Despite the recent decline in stock price, Accenture's valuation remains high, with a PE ratio of 25.43, which is close to a 1-year low. This high valuation could be indicative of strong future earnings growth expectations, which has been a consistent theme. In conclusion, while there are minor deviations from expectations, Accenture's historical performance, analyst forecasts, and market valuation all point to reliable earnings forecasts. The company's strong financial health and resilience further support the reliability of its earnings forecasts.