We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
ACN’s earnings (excluding 13 cents from non-recurring items) of $3.6 per share outpaced the Zacks Consensus Estimate by 6.2% and increased 28.7% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 3.1% and gained 9.1% on a year-over-year basis.
The company’s shares have gained 14.5% in the past six months, underperforming the industry’s 22.3% rise. However, it has outperformed 11.6% growth of the Zacks S&P 500.
Based on the type of work, managed services’ revenues of $8.6 billion increased 11% from the year-ago quarter on a reported basis and in local currency, surpassing our estimate of $8.2 billion. Consulting revenues gained 7% year over year on a reported basis and 6% in local currency to $9 billion, beating our projection of $8.9 billion.
Segment-wise, health and public service revenues of $3.8 billion grew 13% from the year-ago quarter on a reported basis and 12% in local currency. The figure beat our expectation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 6% on both reported and local currency basis. The figure met our estimate. Revenues from the product segment amounted to $5.4 billion, increasing 12% year over year on a reported basis and 10% on a local currency basis. The figure outpaced our estimation of $5.2 billion.
Communications, media and technology revenues of $2.9 billion increased 7% year over year on a reported basis and in terms of local currency, meeting our estimate. Financial services revenues of $3.2 billion grew 4% from the year-ago quarter on a reported basis and in local currency. The figure surpassed our estimate of $3.1 billion.
Geographically, revenues of $8.7 billion from the Americas rose 9% from the year-ago quarter on a reported basis and 11% on a local currency basis. The figure beat our projection of $8.6 billion. Revenues of $6.4 billion from the EMEA gained 10% on a reported basis and 6% in local currency, beating our estimation of $6 billion. Revenues of $2.5 billion from the Asia Pacific increased 6% year over year on a reported basis and 4% in local currency, meeting our projection.
Booking Trends of Accenture
The company reported bookings worth $18.7 billion in first-quarter fiscal 2025, rising 1% from the year-ago quarter on a reported basis and in local currency. Consulting bookings were $9.2 billion and managed services bookings were $9.5 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the first quarter of fiscal 2025 was 32.9%, down 70 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.7 billion, rising 9% on a year-over-year basis. The adjusted operating margin of 16.7% is flat with first-quarter fiscal 2024.
Balance Sheet & Cash Flow of Accenture
ACN exited first-quarter fiscal 2025 with cash and cash equivalents of $8.3 billion compared with $5 billion at the end of fourth-quarter fiscal 2024. The company generated $1 billion in cash from operating activities. Capital expenditure in the reported quarter was $152.2 million.
The free cash flow was $870 billion. Accenture repurchased 2.5 million shares for $898 million, including 2.2 million shares repurchased in the open market. The company paid out a dividend of $926 million in the first quarter of fiscal 2025.
ACN’s FY25 Guidance
For fiscal 2025, Accenture raised its revenue growth guidance to 4-7% in local currency compared with the view of 3-6% given in the preceding quarter. The company expects an operating cash flow 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 #4 (Sell) at present.
CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.
VRSK’s adjusted earnings (excluding 13 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 4.4% and growing 9.9% from the year-ago quarter. Total revenues of $725.3 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Accenture Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
Accenture plc (ACN - Free Report) has reported better-than-expected first-quarter fiscal 2025 results.
See Zacks Earnings Calendar to stay ahead of market-making news.
ACN’s earnings (excluding 13 cents from non-recurring items) of $3.6 per share outpaced the Zacks Consensus Estimate by 6.2% and increased 28.7% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 3.1% and gained 9.1% on a year-over-year basis.
The company’s shares have gained 14.5% in the past six months, underperforming the industry’s 22.3% rise. However, it has outperformed 11.6% growth of the Zacks S&P 500.
Accenture PLC Price, Consensus and EPS Surprise
Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC Quote
ACN’s Revenues in Detail
Based on the type of work, managed services’ revenues of $8.6 billion increased 11% from the year-ago quarter on a reported basis and in local currency, surpassing our estimate of $8.2 billion. Consulting revenues gained 7% year over year on a reported basis and 6% in local currency to $9 billion, beating our projection of $8.9 billion.
Segment-wise, health and public service revenues of $3.8 billion grew 13% from the year-ago quarter on a reported basis and 12% in local currency. The figure beat our expectation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 6% on both reported and local currency basis. The figure met our estimate. Revenues from the product segment amounted to $5.4 billion, increasing 12% year over year on a reported basis and 10% on a local currency basis. The figure outpaced our estimation of $5.2 billion.
Communications, media and technology revenues of $2.9 billion increased 7% year over year on a reported basis and in terms of local currency, meeting our estimate. Financial services revenues of $3.2 billion grew 4% from the year-ago quarter on a reported basis and in local currency. The figure surpassed our estimate of $3.1 billion.
Geographically, revenues of $8.7 billion from the Americas rose 9% from the year-ago quarter on a reported basis and 11% on a local currency basis. The figure beat our projection of $8.6 billion. Revenues of $6.4 billion from the EMEA gained 10% on a reported basis and 6% in local currency, beating our estimation of $6 billion. Revenues of $2.5 billion from the Asia Pacific increased 6% year over year on a reported basis and 4% in local currency, meeting our projection.
Booking Trends of Accenture
The company reported bookings worth $18.7 billion in first-quarter fiscal 2025, rising 1% from the year-ago quarter on a reported basis and in local currency. Consulting bookings were $9.2 billion and managed services bookings were $9.5 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the first quarter of fiscal 2025 was 32.9%, down 70 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.7 billion, rising 9% on a year-over-year basis. The adjusted operating margin of 16.7% is flat with first-quarter fiscal 2024.
Balance Sheet & Cash Flow of Accenture
ACN exited first-quarter fiscal 2025 with cash and cash equivalents of $8.3 billion compared with $5 billion at the end of fourth-quarter fiscal 2024. The company generated $1 billion in cash from operating activities. Capital expenditure in the reported quarter was $152.2 million.
The free cash flow was $870 billion. Accenture repurchased 2.5 million shares for $898 million, including 2.2 million shares repurchased in the open market. The company paid out a dividend of $926 million in the first quarter of fiscal 2025.
ACN’s FY25 Guidance
For fiscal 2025, Accenture raised its revenue growth guidance to 4-7% in local currency compared with the view of 3-6% given in the preceding quarter. The company expects an operating cash flow 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 #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of ACN's Peers
Clean Harbors, Inc. (CLH - Free Report) reported mixed third-quarter 2024 results.
CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.
Verisk Analytics Inc. (VRSK - Free Report) posted impressive third-quarter 2024 results.
VRSK’s adjusted earnings (excluding 13 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 4.4% and growing 9.9% from the year-ago quarter. Total revenues of $725.3 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.