Accenture (ACN) delivered strong results in the fourth quarter of fiscal 2024, surpassing analyst expectations and showcasing its continued growth trajectory. The company reported revenues of $16.41 billion, exceeding the analyst consensus estimate of $16.39 billion, marking a 3% year-over-year increase in U.S. dollars and a 5% increase in local currency. This revenue figure falls comfortably within the company’s guided range of $16.05 billion to $16.65 billion, further demonstrating its ability to consistently meet and exceed market projections.
The company’s adjusted earnings per share (EPS) also impressed, reaching $2.79, exceeding the analyst consensus estimate of $2.77. These positive results were achieved despite a negative foreign exchange impact of approximately 2%, which aligns with the assumption provided in the company’s third-quarter earnings release.
Accenture’s success extended beyond its top-line performance. New bookings for the quarter reached $20.1 billion, a significant figure that underscores the company’s strong client relationships and ability to secure new projects. Consulting bookings reached $8.6 billion, while managed services bookings came in at $11.6 billion, demonstrating Accenture’s diverse offerings and ability to serve a wide range of client needs.
Adjusted operating income for the quarter was $2.46 billion, representing a solid 15.0% of revenues, slightly exceeding the 14.9% reported in the previous year’s fourth quarter. This highlights the company’s efficient operations and profitability.
The company’s product revenues climbed to $4.95 billion, reflecting a 4% increase in U.S. dollars and a 6% increase in local currency. Health & Public Service revenues saw a notable 10% increase in U.S. dollars and an 11% increase in local currency, reaching $3.61 billion, demonstrating the growing demand for Accenture’s services in these sectors. Financial Services revenue, however, experienced a slight decline, decreasing by 5% in U.S. dollars and 2% in local currency, reaching $2.87 billion.
Resources revenue remained stable, reaching $2.22 billion, representing no change in U.S. dollars but a 3% increase in local currency. Communications, Media & Technology revenue also demonstrated growth, reaching $2.75 billion, increasing 2% in U.S. dollars and 5% in local currency.
Accenture’s financial strength is further evidenced by its strong cash flow generation. The company generated $3.39 billion in operating cash flow and $3.18 billion in free cash flow during the fourth quarter.
Demonstrating confidence in its future prospects, Accenture announced a quarterly cash dividend of $1.48 per share, representing a 15% increase. The company also secured approval from its board to undertake an additional $4.0 billion in share repurchases, bringing the total outstanding share repurchase authority to approximately $6.7 billion.
Julie Sweet, chair and CEO of Accenture, expressed satisfaction with the company’s performance, highlighting the achievement of full-fiscal year new bookings of $81 billion, including a record 125 quarterly client bookings exceeding $100 million. She also underscored the company’s growing presence among Diamond clients, which represent its largest relationships. “We continue to accelerate our leadership in Generative AI, which we believe is the most transformative technology of the next decade, delivering $3 billion in new bookings for the year,” she said.
Looking forward, Accenture anticipates first-quarter revenues of $16.85 billion to $17.45 billion, exceeding the analyst consensus estimate of $16.94 billion. The company also projected fiscal 2025 adjusted EPS of $12.55 to $12.91, compared to the consensus estimate of $12.85. For fiscal 2025, Accenture expects revenue to reach $66.84 billion to $68.79 billion, slightly below the consensus estimate of $68.72 billion. The company reiterated its operating cash flow target of $9.4 billion to $10.1 billion and free cash flow target of $8.8 billion to $9.5 billion for fiscal 2025.
In premarket trading on Thursday, ACN stock surged by 3.55%, reaching $349.01 per share, demonstrating investor confidence in the company’s strong performance and future prospects.
