(ACN) Accenture’s Run of Wins Continues

Accenture Plc (ACN) has won several deals over the last couple of months. Recently, the U.S. Air Force’s Electronic Systems Center Capabilities Integration Directorate awarded a 24-month contract worth $17.2 million to conduct risk reduction and prototyping for advanced command and control services.

This marks the continuation of Accenture’s long-standing relationship with the U.S. Airforce, and the Department of Defense, and focuses on developing advanced decision support services, information exchange and system interoperability. Prototype solutions will enhance decision-making in the command and control process and reduce risks for the warfighter.

Moreover, Accenture recently won a deal in Singapore. The company launched the National Electronic Health Record (NEHR) system, which was chosen by the Singapore Ministry of Health. Financial terms of the deal were not disclosed. The NEHR system has been deployed across Singapore, to integrate the country’s health care structure. This also makes Singapore one of the first countries in the world to deploy NEHR.

The system, designed by Accenture, will enhance the quality of health care services, as well as lower service costs, thus helping service providers offer quality health care policies. The system also seeks to eliminate duplication, needless medical tests and faulty mediation.

Given the extent and demands of the system, Accenture teamed up with technology majors like Oracle Corp. (ORCL), Hewlett-Packard Co. (HPQ) and smaller companies like Orion Health and Initiate Systems Inc.  to successfully set it up.

Accenture boasts a strong brand reputation that enhances its competitive edge. Moreover, we also sense that Accenture is treading the same path as other offshore IT companies in expanding its operations in the overseas market.

Moreover, the company is intent on expanding margins through the development of the Global Delivery Network over the past few years. However, Accenture’s margins are currently lagging its competitors  – International Business Machines (IBM) and Hewlett-Packard Company.

We find Accenture’s third quarter results encouraging, as both top and bottom lines strongly beat the Zacks Consensus Estimates. Based on improving business momentum and market share gains, Accenture raised its revenue and earnings guidance for fiscal 2011. Moreover, we are encouraged by the steady flow of new business and believe that the trend will continue.

Apart from this, we remain optimistic about Accenture’s deal wins from various industry verticals. We also believe that Accenture’s recent acquisitions will enrich its product portfolio. However, increasing competition from IBM may temper growth prospects to some extent.

Currently, Accenture has a Zacks #2 Rank, implying a Buy rating in the short term.

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