Accenture Shares Hit New High As Results Top Views--Update

By Chelsey Dulaney 

Accenture PLC shares hit an all-time high after the provider of consulting services reported better-than-expected results in its November quarter, boosted by strong growth in its outsourcing business.

The stock, up 19% over the past year, hit a high in early trading Thursday of $90.18 before retreating. Shares more recently traded at $89.65, up 5.1% on the day.

Accenture's earnings have grown steadily in recent years, while its outsourcing and consulting businesses have enjoyed strong growth.

The company, however, did lower 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. 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%.

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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