We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Accenture (ACN) Q4 Earnings Beat Estimates, Revenues Miss
Read MoreHide Full Article
Accenture plc (ACN - Free Report) reported mixed fourth-quarter fiscal 2021 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Earnings of $2.20 per share beat the consensus estimate by 0.5% and improved 29.4% year over year. The bottom line benefited from higher revenues and operating numbers, lower share count and lower effective tax rate, which were partially offset by higher non-operating expenses.
Revenues of $13.42 billion missed the consensus mark by 0.4% but increased 24% year over year on a reported basis and 21% in terms of local currency. Revenues exceeded the guided range of $13.1-$13.5 billion.
So far this year, shares of Accenture have gained 28.1%, compared with 30% growth of the industry it belongs to and 17.2% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Revenues in Detail
Based on the type of work, Consulting revenues of $7.31 billion increased 29% year over year on a reported basis and 25% in terms of local currency. Outsourcing revenues of $6.11 billion increased 19% year over year on a reported basis and 16% in terms of local currency.
Segment-wise, Communications, Media & Technology revenues of $2.77 billion improved 26% year over year on a reported basis and 23% in terms of local currency. Financial Services revenues of $2.61 billion increased 24% year over year on a reported basis and 20% in terms of local currency. Health & Public Service revenues of $2.50 billion increased 20% year over year on a reported basis and 18% in terms of local currency. Products revenues of $3.73 billion grew 29% year over year in U.S. dollars and 25% in terms of local currency. Resources revenues of $1.80 billion increased 17% year over year on a reported basis and 13% in terms of local currency.
Geographically, revenues of $6.39 billion from North America increased 23% year over year on a reported basis and 22% in terms of local currency. Revenues of $4.30 billion from Europe increased 26% on a reported basis and 18% in terms of local currency. Revenues of $2.73 billion from Growth Markets increased 23% year over year on a reported basis and 21% in terms of local currency.
Booking Trends
Accenture reported new bookings worth $15 billion, up 7% year over year on a reported basis and 5% in terms of local currency. Consulting bookings totaled $8 billion and Outsourcing bookings totaled $7.1 billion.
Operating Results
Gross margin (gross profit as a percentage of net revenues) for the fourth quarter of fiscal 2021 increased 150 basis points (bps) to 33.3%. Operating income was $1.96 billion, up 27.3% year over year. Operating margin in the reported quarter expanded 30 bps to 14.6%.
Accenture exited fourth-quarter fiscal 2021 with total cash and cash equivalents balance of $8.17 billion compared with $10 billion at the end of the prior quarter. Long-term debt was $53.5 million compared with $61.6 million at the end of the prior quarter.
Cash provided by operating activities crossed $2.44 billion in the reported quarter. Free cash flow came in at $2.20 billion.
Dividend Payout
On Aug 13, 2021, the company paid out a quarterly cash dividend of 88 cents per share to shareholders of record at the close of business on Jul 15, 2021. These cash dividend payouts totaled $558 million.
The company’s board has raised its quarterly cash dividend by 10% to 97 cents per share, to be paid out on Nov 15, 2021 for shareholders of record at the close of business on Oct 14, 2021.
Share Repurchases
During fourth-quarter fiscal 2021, Accenture repurchased three million shares for $915 million. The company had approximately 633 million total shares outstanding as of Aug 31, 2021.
Guidance
First-Quarter Fiscal 2022
For first-quarter fiscal 2022, Accenture expects revenues of $13.9-$14.35 billion. The expectation is inclusive of a positive foreign-exchange impact of 0.5%. The Zacks Consensus Estimate of $13.47 billion lies below the guidance.
Fiscal 2022
Accenture unveiled its guidance for fiscal year 2021. Revenues are expected to register 12-15% growth in terms of local currency.
The company expects adjusted EPS in the range of $9.9-$10.18. The current Zacks Consensus Estimate of $9.81 lies below the guidance.
Operating cash flow is anticipated in the range of $8.2-$8.7 billion. Free cash flow is expected between $7.5 billion and $8 billion. Operating margin for the fiscal year is expected to be 15.2%-15.4%.
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and increased on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and rose 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and surged more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and increased more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and rallied 41% year over year on a reported basis and 31.3% on a constant-currency basis.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Accenture (ACN) Q4 Earnings Beat Estimates, Revenues Miss
Accenture plc (ACN - Free Report) reported mixed fourth-quarter fiscal 2021 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Earnings of $2.20 per share beat the consensus estimate by 0.5% and improved 29.4% year over year. The bottom line benefited from higher revenues and operating numbers, lower share count and lower effective tax rate, which were partially offset by higher non-operating expenses.
Revenues of $13.42 billion missed the consensus mark by 0.4% but increased 24% year over year on a reported basis and 21% in terms of local currency. Revenues exceeded the guided range of $13.1-$13.5 billion.
So far this year, shares of Accenture have gained 28.1%, compared with 30% growth of the industry it belongs to and 17.2% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Revenues in Detail
Based on the type of work, Consulting revenues of $7.31 billion increased 29% year over year on a reported basis and 25% in terms of local currency. Outsourcing revenues of $6.11 billion increased 19% year over year on a reported basis and 16% in terms of local currency.
Segment-wise, Communications, Media & Technology revenues of $2.77 billion improved 26% year over year on a reported basis and 23% in terms of local currency. Financial Services revenues of $2.61 billion increased 24% year over year on a reported basis and 20% in terms of local currency. Health & Public Service revenues of $2.50 billion increased 20% year over year on a reported basis and 18% in terms of local currency. Products revenues of $3.73 billion grew 29% year over year in U.S. dollars and 25% in terms of local currency. Resources revenues of $1.80 billion increased 17% year over year on a reported basis and 13% in terms of local currency.
Geographically, revenues of $6.39 billion from North America increased 23% year over year on a reported basis and 22% in terms of local currency. Revenues of $4.30 billion from Europe increased 26% on a reported basis and 18% in terms of local currency. Revenues of $2.73 billion from Growth Markets increased 23% year over year on a reported basis and 21% in terms of local currency.
Booking Trends
Accenture reported new bookings worth $15 billion, up 7% year over year on a reported basis and 5% in terms of local currency. Consulting bookings totaled $8 billion and Outsourcing bookings totaled $7.1 billion.
Operating Results
Gross margin (gross profit as a percentage of net revenues) for the fourth quarter of fiscal 2021 increased 150 basis points (bps) to 33.3%. Operating income was $1.96 billion, up 27.3% year over year. Operating margin in the reported quarter expanded 30 bps to 14.6%.
Accenture PLC Price, Consensus and EPS Surprise
Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC Quote
Balance Sheet & Cash Flow
Accenture exited fourth-quarter fiscal 2021 with total cash and cash equivalents balance of $8.17 billion compared with $10 billion at the end of the prior quarter. Long-term debt was $53.5 million compared with $61.6 million at the end of the prior quarter.
Cash provided by operating activities crossed $2.44 billion in the reported quarter. Free cash flow came in at $2.20 billion.
Dividend Payout
On Aug 13, 2021, the company paid out a quarterly cash dividend of 88 cents per share to shareholders of record at the close of business on Jul 15, 2021. These cash dividend payouts totaled $558 million.
The company’s board has raised its quarterly cash dividend by 10% to 97 cents per share, to be paid out on Nov 15, 2021 for shareholders of record at the close of business on Oct 14, 2021.
Share Repurchases
During fourth-quarter fiscal 2021, Accenture repurchased three million shares for $915 million. The company had approximately 633 million total shares outstanding as of Aug 31, 2021.
Guidance
First-Quarter Fiscal 2022
For first-quarter fiscal 2022, Accenture expects revenues of $13.9-$14.35 billion. The expectation is inclusive of a positive foreign-exchange impact of 0.5%. The Zacks Consensus Estimate of $13.47 billion lies below the guidance.
Fiscal 2022
Accenture unveiled its guidance for fiscal year 2021. Revenues are expected to register 12-15% growth in terms of local currency.
The company expects adjusted EPS in the range of $9.9-$10.18. The current Zacks Consensus Estimate of $9.81 lies below the guidance.
Operating cash flow is anticipated in the range of $8.2-$8.7 billion. Free cash flow is expected between $7.5 billion and $8 billion. Operating margin for the fiscal year is expected to be 15.2%-15.4%.
Currently, Accenture carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and increased on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and rose 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and surged more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and increased more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and rallied 41% year over year on a reported basis and 31.3% on a constant-currency basis.