By Yahoo! Finance | Created at 2024-09-26 12:22:21 | Updated at 2024-09-30 11:39:55
4 days ago
Accenture (ACN) stock climbed early Thursday after the global technology services firm reported fiscal fourth-quarter earnings and revenue that slightly beat estimates amid its acquisition spree.
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Accenture earnings for the quarter ended Aug. 31 rose 3% to 2.79 per share on an adjusted basis, said the Dublin-based consulting firm. Including acquisitions, revenue increased 3% to $16.4 billion, Accenture said.
Analysts expected Accenture earnings of $2.78 a share on sales of $16.36 billion. Bookings rose 21% to $20.1 billion, including $1 billion in artificial intelligence-related bookings.
On the stock market today, Accenture stock climbed 3.2% to near 348 in early trading.
Accenture Stock: Acquisition Spree
Fiscal 2025 revenue guidance for ACN stock met expectations, including a lift from currency exchange rates.
For fiscal 2025, which starts with the current October quarter, the company said: "Accenture's business outlook for the full 2025 fiscal year assumes that the foreign-exchange impact on its results in U.S. dollars will be approximately positive 1.5% compared with fiscal 2024. For fiscal 2025, the company expects revenue growth to be in the range of 3% to 6% in local currency."
Accenture predicted EPS of $12.73 at the midpoint of guidance. Analysts polled by FactSet had estimated EPS of $12.75, with revenue growing in a range of 3% to 6%.
Meanwhile, Accenture acquisitions are expected to contribute 3% to fiscal 2025 revenue growth, said a BMO Capital Markets report. Through May, Accenture had completed $5.2 billion in acquisitions this fiscal year, up from $2.5 billion in fiscal 2023 and $3.4 billion in fiscal 2022.
Heading into the Accenture earnings report, shares were down 3% in 2024.
Shares fell last week amid a report that Accenture is delaying promotions by six months, raising concern over fiscal 2025 guidance.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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