Selected stock price target news of the day - September 29, 2023

By: Matthew Otto

Accenture Reports Fiscal Year 2023 with Record Bookings and Strategic Initiatives

In Accenture’s fourth quarter of fiscal 2023, the company reported total revenues of $16 billion, marking a 4% increase in both US dollar and local currency. The growth was driven by high-single or double-digit growth in five out of its 13 industries. Notably, the Consulting and Managed Services bookings were $8.5 billion and $8.2 billion, respectively, with a book-to-bill ratio of 1 for both segments. Adjusted operating margin for the quarter was reported at 14.9%, reflecting a 20 basis point increase compared to the same period last year. Free cash flow for the quarter stood at $3.2 billion.

For the full fiscal year 2023, Accenture achieved record bookings of $72.2 billion, representing a 5% growth in local currency. Revenues for the year reached $64.1 billion, reflecting an 8% growth in local currency. The adjusted operating margin for the full year was 15.4%, showcasing a 20-basis point expansion over the previous fiscal year. Adjusted earnings per share for fiscal year 2023 were reported at $11.67, demonstrating a 9% growth over the prior fiscal year. Accenture’s financial performance allowed the company to return over $7 billion of cash to shareholders, exceeding its original guidance for capital allocation while making investments across 25 acquisitions.

Looking ahead to fiscal year 2024, Accenture projects a revenue growth range of 2% to 5% in local currency, inclusive of an estimated inorganic contribution of about 2%. The company anticipates an adjusted operating margin expansion of 10 to 30 basis points over the adjusted fiscal 2023 results. Adjusted earnings per share for fiscal year 2024 are expected to be in the range of $11.97 to $12.32, representing a 3% to 6% growth over adjusted fiscal 2023 results.

Analysts Maintain Neutral Stance Amid Market Dynamics

TD Cowen analyst Bryan Bergin maintained a Market Perform and lowered the price target from $312 to $300.
Baird analyst David Koning reiterated a Neutral and lowered the price target from $332 to $322.
Piper Sandler analyst Arvind Ramnani kept a Neutral and lowered the price target from $312 to $300.

Which Analyst has the best track record to show on ACN?

Analyst Arvind Ramnani (PIPER SANDLER) currently has the highest performing score on ACN with 24/28 (85.71%) price target fulfillment ratio. His price targets carry an average of $17.86 (10.15%) potential upside. Accenture stock price reaches these price targets on average within 161 days.

CarMax Financial Resilience in Q2 2024 Amid Market Challenges

CarMax fiscal 2024 second-quarter earnings report showcased total sales of $7.1 billion versus the consensus estimate of $7.01 billion, reflecting a 13% decrease compared to the previous year. Notably, retail unit sales experienced a 7.4% decline, with used unit comps down by 9%. The average selling price per unit decreased by approximately 4% year-over-year, yet retail gross profit per used unit remained at $2,251, aligning with the previous year’s second-quarter record high of $2,282.

CarMax’s total gross profit reached $697 million, representing a 5% decrease from the same period last year. The company exhibited cost management, with expenses for the second quarter at $586 million, a 12% decrease from the prior year. The focus on operational efficiency is evident in the reduction of advertising expenses by $17 million and a decrease in total compensation and benefits by $28 million. As of the end of the quarter, the company had $2.45 billion of repurchase authorization remaining.

CarMax Auto Finance (CAF) reported an income of $135 million for the quarter, down from $183 million in the same period last year. CAF’s penetration rate stood at 42.8%, reflecting consistency from the previous quarter and an increase from 41.2% observed in the second quarter of the prior year. The weighted average contract rate charged to new customers increased by 170 basis points to 11.1%.

Analyst Adjusted Price Targets Amid Market Dynamics

Stephens & Co. analyst Daniel Imbro maintained Equal-Weight but lowered the price target from $78 to $70.
Baird analyst Craig Kennison reiterated an Outperform rating and adjusted the price target downward from $96 to $88.

Which Analyst has the best track record to show on KMX?

Analyst Scot Ciccarelli (TRUIST) currently has the highest performing score on KMX with 17/20 (85%) price target fulfillment ratio. His price targets carry an average of $7.05 (8.05%) potential upside. CarMarx stock price reaches these price targets on average within 91 days.

UPS Charts a Course Towards Automation

United Parcel Service is set to revolutionize its package sorting operations through increased automation, aiming to enhance efficiency and reduce labor costs, according to a recent Citigroup report by analyst Christian Wetherbee. The company, known for its extensive workforce of around 140,000 inside workers apart from drivers, is planning to discuss potential headcount reductions at an investor-day meeting in March. This strategic move is part of UPS’s broader initiative to tap into material productivity opportunities, as highlighted in a breakfast meeting with analysts..

By leveraging technology to handle package sorting, UPS aims to lower labor costs, particularly in the later years of the upcoming labor contract. This move could impact the overall union workforce, currently standing at approximately 300,000, with expectations that the numbers might decrease by the end of the five-year contract.

Analysts Mixed Outlook for UPS

Raymond James analyst Patrick Tyler Brown maintained Strong Buy and lowered the price target from $205 to $200.
HSBC analyst Parash Jain initiated a Hold rating and a Price Target at $170.

Which Analyst has the best track record to show on UPS?

Analyst Fadi Chamoun (BMO) currently has the highest performing score on UPS with 13/15 (86.67%) price target fulfillment ratio. His price targets carry an average of $14.54 (13.29%) potential upside. United Parcel Service stock price reaches these price targets on average within 344 days.