Accenture Results Top Expectations, But Company Lowers Profit Outlook On Forex

By Chelsey Dulaney 

Accenture said strong growth in its outsourcing business helped drive better-than-expected results in its November quarter, but the firm lowered its earnings guidance for the year on higher foreign exchange headwinds.

Accenture said it now expects to post earnings of $4.66 to $4.80, down from its previous guidance of $4.74 and $4.88 a share in earnings. The company bumped up its revenue outlook, however, saying it now expects revenue growth of 5% to 8%, up from its previous range of 4% to 7%.

Accenture provides consulting services to large, multinational technology firms such as International Business Machines Corp. Its earnings have grown steadily in recent years, while its outsourcing and consulting businesses have enjoyed strong growth.

For the period ended Nov. 30, the consulting unit's net revenue grew 4% to $4.09 billion. Revenue from outsourcing grew 11% to $3.8 billion.

Overall, Accenture reported earnings of $831.5 million, up from $751.8 million in the prior-year period. On a per-share basis, which includes income attributable to noncontrolling interests, earnings rose to $1.29 from $1.15.

Analysts had projected earnings of $1.20 a share in the latest period.

Net revenues grew 7.3% to $7.89 billion, topping its expectation for $7.55 billion to $7.8 billion.

Looking ahead, the company expects net revenue between $7.25 billion and $7.50 billion in the current period. Analysts had expected revenue of $7.46 billion.

Write to Chelsey Dulaney at [e-mail]

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