Friday, March 26, 2010

Accenture The Place To Be?

Accenture (ACN) a global consulting practice delivered a 2% drop for Q2 net revenues. Based in Dublin, Ireland but still having a tax rate of 27% to 28% the company reported a few commodity like items as if they were a fast food company. Some geographical and operating group numbers were provided. It’s just like McDonalds telling you how many Big Macs were sold in Australia. Important for McDonalds.

The intrinsic nature and value of a consultancy is the intellectual capital and the people who create and exploit the intellectual capital. The shareholder when reading the earnings release has no idea of how well the investment is doing in relation to intellectual capital.

Any market place has trends. Any market place has thought leaders and innovators. Accenture is not demonstrating to the investor that they possess any of these qualities. The numbers show a disconcerting 2% decline. (Foreign exchange helped Accenture big time this time around)

Is Accenture the place to be?