Accenture (NYSE:ACN), the Dublin-based global tech services and consulting firm, reported its fiscal fourth-quarter earnings on Thursday that exceeded Wall Street's expectations, while the revenue fell short due to weak bookings. The company's fiscal 2024 revenue outlook for ACN stock also came in below expectations.
For the quarter ending August 31, Accenture's earnings rose by 4% to $2.71 per share on an adjusted basis, outperforming analysts' expected earnings of $2.65 a share. However, sales of $16 billion did not meet the expected $16.07 billion. This reflects a 4% increase from last year's sales of $15.42 billion.
The company reported a drop in fiscal Q4 bookings by 10% to $16.6 billion. Looking ahead to the fiscal first quarter ending in November, Accenture projected its revenue to be in the range of $15.85 billion to $16.45 billion, slightly below analysts' projection of $16.44 billion.
For the full fiscal year 2024, Accenture forecasted a modest revenue growth of 2%-5%, falling short of analyst estimates of $67.15 billion, which predicted a growth of 4.6%. Despite the lower than expected revenue outlook, Accenture increased its quarterly dividend by 15% to $1.29 a share and added $4 billion to its stock buyback program.
In trading before the market opened on Thursday, ACN stock fell by 3.3% to 304 following the earnings report. However, ACN's stock has seen an overall increase of 16% in 2023.
Accenture continues to expand its business through acquisitions in digital marketing, cloud computing services, and cybersecurity products. The company has also ramped up investments in artificial intelligence and blockchain technology. According to IBD Stock Check Up, ACN stock had a Relative Strength Rating of 83 out of a possible 99.
The company reported an annual profit of $6.87 billion, or $10.77 per share, with total revenue reported as $64.11 billion. For the full fiscal year, Accenture expects earnings to be in the range of $11.97 to $12.32 per share. Despite the recent dip following the earnings report, Accenture shares have increased by 18% since the beginning of the year, outperforming the S&P 500 index which has risen by 11%. Over the last 12 months, the stock has surged by 23%.
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