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Investors Business Daily
Investors Business Daily
Technology
REINHARDT KRAUSE

Accenture Falls On Fiscal Fourth-Quarter Revenue Miss, Sales Outlook

Accenture fell early Thursday after it reported fiscal fourth-quarter earnings that topped Wall Street targets while revenue missed amid weak bookings. Meanwhile, the company's fiscal 2024 revenue outlook for ACN stock came in below expectations.

Accenture earnings for the quarter ended Aug. 31 rose 4% to $2.71 per share on an adjusted basis, said the Dublin-based global tech services and consulting firm. Including acquisitions, revenue climbed 4% to $16 billion, Accenture said.

Analysts expected Accenture earnings of $2.65 a share on sales of $16.07 billion. A year earlier, Accenture earned $2.60 a share on sales of $15.42 billion.

Fiscal fourth-quarter bookings fell 10% to $16.6 billion from a year earlier.

"Bookings were arguably a bit weaker than expected, down 10% overall, with consulting bookings surprising positive at 1%, while managed services declined nearly 20%,"  Jefferies analyst Surinder Thind said in a note to clients.

On the stock market today, ACN stock fell 5.5% to 297.10 in morning trades. ACN stock had advanced 16% this year heading into the Accenture earnings report.

ACN Stock: 2024 Sales Outlook Light

For its fiscal first quarter, which ends in November, Accenture said it expects revenue in a range of $15.85 billion to $16.45 billion. Analysts called for revenue of $16.44 billion, up 4%.

For full-year fiscal 2024, Accenture forecast 2%-5% revenue growth vs. analyst estimates of $67.2 billion, up 4.6%.

Accenture hiked its quarterly dividend by 15% to $1.29 a share. It also added $4 billion to a stock buyback program.

Accenture continues to make acquisitions to move into digital marketing, cloud computing services and cybersecurity products. It also has increased investments in artificial intelligence and blockchain technology.

Further, ACN stock has a Relative Strength Rating of 83 out of a best-possible 99, according to IBD Stock Check Up.

Follow Reinhardt Krause on X,  formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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