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Accenture plc (ACN - Free Report) has reported better-than-expected fourth-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
ACN’s earnings (excluding 13 cents from non-recurring items) of $2.8 per share beat the Zacks Consensus Estimate marginally and increased 3% from the year-ago quarter’s actual. Total revenues of $16.4 billion beat the consensus estimate by a slight margin and gained 2.6% on a year-over-year basis.
The company’s shares have gained 10.7% which is slightly lower than the industry's 10.8% growth. However, the stock significantly outperforms the 4.1% growth of the Zacks S&P 500.
Based on the type of work, managed services’ revenues of $8.1 billion increased 5% from the year-ago quarter on a reported basis and 7% in terms of local currency, surpassing our estimate of $8 billion. Consulting revenues gained 1% year over year on a reported basis and 3% in terms of local currency to $8.3 billion, meeting our anticipated figure.
Segment-wise, health & public service revenues of $3.6 billion grew 10% from the year-ago quarter on a reported basis and 11% in terms of local currency. The figure beat our expectation of $3.4 billion. Revenues from the resources segment amounted to $2.2 billion, flat on a reported basis and rising 3% on a local currency basis. The figure missed our anticipation of $2.3 billion. Revenues from the product segment amounted to $4.9 billion, increased 4% year over year on a reported basis and 6% on a local currency basis. This figure met our estimation.
Communications, media & technology revenues of $2.8 billion increased 2% on a reported basis and 5% in terms of local currency, surpassing our expectation of $2.7 billion. Financial services revenues of $2.9 billion decreased 5% from the year-ago quarter’s reading on a reported basis and 2% in terms of local currency. The figure missed our estimate of $3 billion.
Geographically, revenues of $5.6 billion from the EMEA gained 2% in both reported and local currency basis, missing our anticipation of $5.7 billion. Revenues of $2.8 billion from growth markets decreased 3% year over year on a reported basis but gained 9% in terms of local currency, missing our estimate of $2.9 billion. Revenues of $8 billion from North America increased 5% from the year-ago quarter on a reported basis and 6% on a local currency basis. The figure beat our anticipation of $7.6 billion.
Booking Trends of Accenture
Accenture reported new bookings worth $20.1 billion in fourth-quarter fiscal 2024, rising 21% from the year-ago quarter on a reported basis and 24% in terms of local currency. Consulting bookings totaled $8.6 billion and managed services bookings amounted to $11.6 billion.
ACN's Operating Results
The gross margin (gross profit as a percentage of net revenues) for the fourth quarter of fiscal 2024 was 32.5%, up 10 basis points (bps) from the year-ago fiscal quarter. Adjusted operating income was $2.5 billion, rising 3.4% on a year-over-year basis. The adjusted operating margin of 15% increased 10 bps from fourth-quarter fiscal 2023.
Accenture's Balance Sheet & Cash Flow
Accenture exited fourth-quarter fiscal 2024 with cash and cash equivalents of $5 billion compared with $5.5 billion at the end of third-quarter. ACN generated $3.4 billion in cash from operating activities. Capital expenditure in the reported quarter was $213.6 million.
The free cash flow was $3.2 billion. Accenture repurchased 2.1 million shares for $628 million, including 2 million shares repurchased in the open market. The company paid out a dividend of $807.9 million in the fourth quarter of fiscal 2024.
ACN’s First-Quarter & FY25 Guidance
For the first quarter of fiscal 2025, the company expects revenues to be within the range of $16.85-$17.45 billion. The current Zacks Consensus Estimate of $16.34 billion is lower than the guided range.
For fiscal 2025, Accenture expects operating cash flow to be in the range of $9.4-$10.1 billion. The free cash flow is anticipated between $8.8 billion and $9.5 billion.
Republic Services, Inc. (RSG - Free Report) reported an impressive second-quarter 2024 results.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.6 beat the Zacks Consensus Estimate by 5.2% and increased 14.2% from the year-ago quarter’s actual. Revenues of $4 billion beat the consensus mark by a slight margin and gained 8.6% year over year.
ABM’s EPS (excluding 86 cents from non-recurring items) was 94 cents, which outpaced the Zacks Consensus Estimate by 10.6% and gained 19% on a year-over-year basis. Total revenues of $2.1 billion surpassed the consensus mark by 2.7% and increased 3.3% from the year-ago quarter’s level.
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Accenture's Q4 Earnings & Revenues Beat Estimates, Increase Y/Y
Accenture plc (ACN - Free Report) has reported better-than-expected fourth-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
ACN’s earnings (excluding 13 cents from non-recurring items) of $2.8 per share beat the Zacks Consensus Estimate marginally and increased 3% from the year-ago quarter’s actual. Total revenues of $16.4 billion beat the consensus estimate by a slight margin and gained 2.6% on a year-over-year basis.
The company’s shares have gained 10.7% which is slightly lower than the industry's 10.8% growth. However, the stock significantly outperforms the 4.1% growth of the Zacks S&P 500.
Accenture PLC Price and EPS Surprise
Accenture PLC price-eps-surprise | Accenture PLC Quote
ACN's Revenues in Detail
Based on the type of work, managed services’ revenues of $8.1 billion increased 5% from the year-ago quarter on a reported basis and 7% in terms of local currency, surpassing our estimate of $8 billion. Consulting revenues gained 1% year over year on a reported basis and 3% in terms of local currency to $8.3 billion, meeting our anticipated figure.
Segment-wise, health & public service revenues of $3.6 billion grew 10% from the year-ago quarter on a reported basis and 11% in terms of local currency. The figure beat our expectation of $3.4 billion. Revenues from the resources segment amounted to $2.2 billion, flat on a reported basis and rising 3% on a local currency basis. The figure missed our anticipation of $2.3 billion. Revenues from the product segment amounted to $4.9 billion, increased 4% year over year on a reported basis and 6% on a local currency basis. This figure met our estimation.
Communications, media & technology revenues of $2.8 billion increased 2% on a reported basis and 5% in terms of local currency, surpassing our expectation of $2.7 billion. Financial services revenues of $2.9 billion decreased 5% from the year-ago quarter’s reading on a reported basis and 2% in terms of local currency. The figure missed our estimate of $3 billion.
Geographically, revenues of $5.6 billion from the EMEA gained 2% in both reported and local currency basis, missing our anticipation of $5.7 billion. Revenues of $2.8 billion from growth markets decreased 3% year over year on a reported basis but gained 9% in terms of local currency, missing our estimate of $2.9 billion. Revenues of $8 billion from North America increased 5% from the year-ago quarter on a reported basis and 6% on a local currency basis. The figure beat our anticipation of $7.6 billion.
Booking Trends of Accenture
Accenture reported new bookings worth $20.1 billion in fourth-quarter fiscal 2024, rising 21% from the year-ago quarter on a reported basis and 24% in terms of local currency. Consulting bookings totaled $8.6 billion and managed services bookings amounted to $11.6 billion.
ACN's Operating Results
The gross margin (gross profit as a percentage of net revenues) for the fourth quarter of fiscal 2024 was 32.5%, up 10 basis points (bps) from the year-ago fiscal quarter. Adjusted operating income was $2.5 billion, rising 3.4% on a year-over-year basis. The adjusted operating margin of 15% increased 10 bps from fourth-quarter fiscal 2023.
Accenture's Balance Sheet & Cash Flow
Accenture exited fourth-quarter fiscal 2024 with cash and cash equivalents of $5 billion compared with $5.5 billion at the end of third-quarter. ACN generated $3.4 billion in cash from operating activities. Capital expenditure in the reported quarter was $213.6 million.
The free cash flow was $3.2 billion. Accenture repurchased 2.1 million shares for $628 million, including 2 million shares repurchased in the open market. The company paid out a dividend of $807.9 million in the fourth quarter of fiscal 2024.
ACN’s First-Quarter & FY25 Guidance
For the first quarter of fiscal 2025, the company expects revenues to be within the range of $16.85-$17.45 billion. The current Zacks Consensus Estimate of $16.34 billion is lower than the guided range.
For fiscal 2025, Accenture expects operating cash flow to be in the range of $9.4-$10.1 billion. The free cash flow is anticipated between $8.8 billion and $9.5 billion.
Accenture carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
Republic Services, Inc. (RSG - Free Report) reported an impressive second-quarter 2024 results.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.6 beat the Zacks Consensus Estimate by 5.2% and increased 14.2% from the year-ago quarter’s actual. Revenues of $4 billion beat the consensus mark by a slight margin and gained 8.6% year over year.
ABM Industries Incorporated (ABM - Free Report) reported impressive third-quarter fiscal 2024 results.
ABM’s EPS (excluding 86 cents from non-recurring items) was 94 cents, which outpaced the Zacks Consensus Estimate by 10.6% and gained 19% on a year-over-year basis. Total revenues of $2.1 billion surpassed the consensus mark by 2.7% and increased 3.3% from the year-ago quarter’s level.