Accenture Has A Speed Problem

Accenture: solid Q4 just reported but miss of 4% of Q1 FY 16 guidance + miss of 1% of EPS FY 16 guidance. Accenture rarely misses => some pressure possible on Capgemini and to a lesser extent SAP …conf call at 2 pm,” was the comment I got from a European broker today.

Accenture results top expectations,” was the headline from The Wall Street Journal.

accenture-logo

Either way, it appears that Accenture should invest more in its own online platform — not only to gain market share from its rivals but also to market itself as a stronger digital player worldwide. Accenture is generating loads of cash, so it could easily invest more: this is relevant because Accenture offers SEO services to its core clients but its own platform isn’t fully optimised, and some metrics are particularly disappointing, according to our preliminary findings.

Market Vs Accenture

Brokers rarely try and get their message across to a broader audience but the initial feedback I got simply means that the group did not meet expectations today when it reported its fourth-quarter and full-year results.

Earnings were below the level that most analysts expected, according to the broker, although Accenture said that its trading update was “very strong“. Who is right?

Well, market reaction was muted — its stock was down 1% at 15.00 BST, broadly in line with the S&P 500.

My take is that Accenture once again reported a solid trading update — only a touch light on revenues, perhaps. Adjusted earnings per share and dividends per share are growing fast, while free cash flow (FCF) stands at $3.7bn, which implies a rich FCF yield north of 5%.

Preliminary SEO Audit

  • Website: www.accenture.com
  • Technical
    • A decent technical set-up has been detected, yet some pages have incorrect canonical tags.
    • Duplication is an issue that must be addressed
  • Speed: Metrics for Mobile and Desktop are well below average (only 36/100 for mobile!)
  • Hierarchy structure: The platform is not fully optimised; path journey’s efficiency must be investigated

Our full SEO audit will be published on Friday.

If you want to discuss how Accenture could boost its online performance and you are interested in a premium audit of its website please contact our team at info@hedgingbeta.com

(Alessandro Pasetti and Hedging Beta are not invested in any of the companies mentioned in this article.)