Accenture on Thursday beat Wall Street's targets for its fiscal first quarter but cut its earnings outlook for the full year ahead. Still, ACN stock advanced after the report.
The global management consulting and technology services firm earned $3.59 a share on sales of $17.69 billion in the quarter ended Nov. 30. Analysts polled by FactSet had expected Accenture earnings of $3.42 a share on sales of $17.15 billion. On a year-over-year basis, Accenture earnings rose 16% while sales climbed 9%.
For the current quarter, Accenture expects to generate revenue of $16.2 billion to $16.8 billion. The midpoint of $16.5 billion is below the consensus estimate of $16.67 billion for fiscal Q2.
Also, Accenture raised its revenue forecast for fiscal 2025 but trimmed its earnings target.
The company now expects full-year revenue to grow 4% to 7% in local currency, compared to 3% to 6% previously.
However, Accenture expects fiscal 2025 earnings per share of $12.43 to $12.79, compared to $12.55 to $12.91 previously. The midpoint of its current EPS guidance is $12.61, vs. the consensus estimate of $12.74. In fiscal 2024, Accenture earned $11.95 a share.
ACN Stock Nears Buy Point
On the stock market today, ACN stock rose 7.1% to close at 372.16, jumping back above its 50-day moving average line.
ACN stock has formed a nine-month cup-with-handle base with a buy point of 377.34, according to IBD MarketSurge charts.
"Our strategy to lead reinvention for clients while continuing to invest in our business has given us a strong start to fiscal 2025," Chief Executive Julie Sweet said in a news release.
She added, "First-quarter new bookings were $18.7 billion, including 30 quarterly client bookings of more than $100 million, and we continued to lead in helping our clients realize value with generative AI, with new bookings of $1.2 billion."
In October, Accenture forged a partnership with AI chip leader Nvidia to drive corporate adoption of artificial intelligence technologies.
Nvidia and Accenture are focused on "agentic AI systems," the companies said. They plan to implement generative AI agents to automate tasks, including in marketing and factory automation.
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