NEW YORK - Defense technology firm L3Harris Technologies (NYSE:LHX) has announced a strategic partnership with global professional services company Accenture (NYSE:NYSE:ACN) to advance its digital overhaul. The collaboration is part of L3Harris's LHX NeXt transformation initiative, focusing on the development of a robust digital core to enhance operations and foster growth.
Through this partnership, L3Harris aims to utilize Accenture's extensive expertise in digital technologies, including cloud, infrastructure, and application services, to achieve greater agility and scalability while improving user experiences. A segment of L3Harris's IT staff will transition to Accenture, gaining access to specialized training and skill development in new technologies and operations.
Christopher E. Kubasik, Chair and CEO of L3Harris, expressed that the partnership will allow the company to modernize and automate its IT infrastructure swiftly, aligning with its role as the industry's "Trusted Disruptor" and its commitment to innovation that enhances customer value.
Julie Sweet, Chair and CEO of Accenture, highlighted the opportunity to help L3Harris optimize operations and achieve new performance levels across the business by leveraging cloud and automation technologies.
L3Harris Technologies, known for its comprehensive technology solutions across various domains in the interest of national security, and Accenture, with its broad range of services and global reach, are poised to create a transformative digital infrastructure for L3Harris.
In other recent news, Accenture has been the focus of numerous analyst adjustments. Piper Sandler reduced its share price target for Accenture to $320 from $379, citing a challenging demand environment and broader economic uncertainties. Stifel also adjusted the company's price target to $340 from $395, anticipating a potential revenue headwind from foreign exchange effects and a sluggish macroeconomic environment.
Deutsche Bank (ETR:DBKGn) maintained a steady price target of $295, expecting Accenture to lower its full-year 2024 revenue growth forecast due to a weak IT spending environment. TD Cowen reduced the price target from $350 to $294 due to concerns about a slowdown in enterprise spending. Despite the adjustments, all these firms maintain their respective ratings on the stock.
On the earnings front, Deutsche Bank anticipates that Accenture will announce third-quarter fiscal year 2024 revenues of approximately $16.56 billion and earnings per share of $3.17. Stifel expects the company's third-quarter earnings per share to be announced before the market opens on June 20, 2024.
Recent developments within Accenture include significant leadership changes. Angie Park has been appointed as the new Chief Financial Officer and Mauro Macchi as the Chief Executive Officer for Europe, the Middle East, and Africa. Other notable appointments include Angela Beatty as Chief Leadership and Human Resources Officer, Karthik Narain as Chief Technology Officer, and Bhaskar Ghosh as Chief Strategy and Innovation Officer.
In business developments, Accenture has been active with Accenture Song appointed as the global creative and content agency of record for Randstad NV, and the company announced the acquisition of Teamexpat, a specialist in embedded software for high-tech industries. In the investment sector, Kevin Hern, representative of Oklahoma's 1st congressional district, purchased Accenture shares valued between $1,001 and $15,000.
InvestingPro Insights
As L3Harris Technologies (NYSE:LHX) embarks on its digital transformation journey with the support of Accenture (NYSE:ACN), it's worth noting Accenture's strong financial position and industry standing that could be advantageous to the partnership. Accenture, a prominent player in the IT Services industry, is trading with a robust market capitalization of $180.13 billion. The company's consistent performance is underscored by its ability to maintain dividend payments for 20 consecutive years, which speaks to its financial health and commitment to shareholder returns—an InvestingPro Tip that aligns with the company's stable and growth-oriented profile.
Accenture's P/E ratio stands at 25.99, reflecting investor confidence in the company's earnings potential. Moreover, the firm's low price volatility is indicative of its steady market presence, an attribute that could contribute to the stability of the partnership with L3Harris. With a dividend yield of 1.8% and a significant dividend growth of 15.18% over the last twelve months, Accenture demonstrates its ability to generate and effectively distribute wealth to its investors.
Investors considering Accenture's stock can explore additional insights and tips on InvestingPro. For instance, Accenture is noted for its cash flows that can sufficiently cover interest payments—an InvestingPro Tip that showcases the company's solid financial management. There are 11 additional InvestingPro Tips available that provide deeper analysis and can aid in making informed investment decisions. To access these valuable insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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