June 26th Accenture reported Q3 EPS of $0.74 compared with consensus of $0.69. Revenues came in at $6.1 billion versus an average Reuters estimate of $5.9 billion. Fourth-quarter revenues were projected to be $5.9-6.1 billion compared with consensus expectations for $5.75 billion.

Likewise, guidance for full-year EPS was ahead of expectations and raised from $2.55-2.60 to $2.63-2.65.

Of note, the CEO stated that the company is not seeing any cancellations or big delays in its business as a result of the weaker U.S. economy and financial sector. CEO Bill Green commented, “In past downturns, that’s always been a threat. We have not had cancellations or overly long delays in this environment

Accenture generates about $2 billion a year in free cash flow, currently holds $3.3 billion in cash and has almost no short-term debt. This is what makes Accenture so unique. From a cashflow perspective, ACN is a juggernaut and while at 15 times next year's eanings, it is more expensive than Electronic Data Systems (EDS), it is definitely cheaper than outsourcing and consulting outfits like Cognizant (CTSH), Infosys (INFY) and WiPro (WIT).

Accenture generates about $2 billion a year in free cash flow, currently holds $3.3 billion in cash and has almost no short-term debt. This is what makes Accenture so unique. From a cashflow perspective, ACN is a juggernaut and while at 15 times next year's eanings, it is more expensive than Electronic Data Systems (EDS), it is definitely cheaper than outsourcing and consulting outfits like Cognizant (CTSH), Infosys (INFY) and WiPro (WIT).

With a strong international exposure, the weak US dollar has not had a negative impact on Accenture's earnings. Additionally, impact from a weaker US economy will be offset by strong demand from emerging markets and Europe.

2007 has not seen the stock do much. Indeed it is up less than 10% and has significantly underperformed the market, specially the tech sector. However, at current levels, the stock sits at a strong level of support at its 200 day moving average and carries low risk. That is why I recommend buying ACN at or below $38.

Faisal Laljee Full Disclosure: I do not own ACN but my position can change anytime without notice.