Accenture Reports Strong Q4 Results with New Bookings Boost
Accenture's Strong Fourth Quarter Financial Performance
Accenture Plc (NYSE: ACN) recently unveiled impressive financial results for the final quarter of fiscal 2024, reporting revenues of $16.41 billion. This figure surpassed the analysts' consensus prediction of $16.39 billion, marking a solid growth of 3% year-over-year in U.S. dollars and 5% in local currency.
Revenue and Earnings Overview
The reported revenues exceeded the company’s own guidance of between $16.05 billion and $16.65 billion, indicating strong operational performance. The adjusted earnings per share (EPS) stood at $2.79, also above the analyst's expected $2.77.
Impact of Foreign Exchange and Bookings
Accenture's quarterly revenues were negatively impacted by foreign exchange fluctuations, estimated at about 2%. Despite this, the company reported new bookings totaling a remarkable $20.1 billion. This comprised $8.6 billion in consulting engagements and $11.6 billion in managed services.
Segment Performance Analysis
The various segments of Accenture's business displayed differing growth patterns. In products, revenues reached $4.95 billion, reflecting a 4% increase in U.S. dollars. The Health & Public Service sector surged by 10% year-on-year, achieving $3.61 billion.
On the flip side, the Financial Services sector observed a decline, generating $2.87 billion, down by 5% in U.S. dollars. Revenue from Resources remained static at $2.22 billion, although it grew by 3% in local currency.
Communications, Media & Technology also showed a modest increase, reaching $2.75 billion, up 2% in U.S. dollars and 5% in local currency.
Cash Flow and Shareholder Returns
During this quarter, Accenture reported significant cash flow generation, with $3.39 billion in operating cash flow and $3.18 billion in free cash flow. This strong cash flow positioned Accenture to declare a quarterly cash dividend of $1.48 per share, which represents a 15% increase from previous distributions.
Additionally, the board authorized $4.0 billion in new share repurchase capacity, bringing the total available to approximately $6.7 billion. Such actions signal a commitment to returning value to shareholders.
Leadership Insights and Future Outlook
Julie Sweet, the chair and CEO of Accenture, emphasized the robust full-year new bookings total of $81 billion. This included a record of 125 quarterly bookings exceeding $100 million, illustrating the strength of their client relationships.
Sweet also highlighted Accenture's focus on Generative AI, which she believes holds transformative potential over the next decade, contributing $3 billion in bookings over the year. Accenture is gearing up for future challenges and opportunities with this commitment in mind.
Projected Results and Strategic Goals
Looking ahead, Accenture anticipates first-quarter revenues between $16.85 billion and $17.45 billion, surpassing the consensus estimate of $16.94 billion. For the full fiscal year 2025, the company projects an adjusted EPS in the range of $12.55 to $12.91, with an overall revenue expectation of $66.84 billion to $68.79 billion.
Accenture’s anticipated operating cash flow is expected to be between $9.4 billion and $10.1 billion, alongside free cash flow estimates of $8.8 billion to $9.5 billion.
Market Response
Following the announcement of these results, Accenture’s stock (ACN) saw an increase of 3.55%, reaching $349.01 in pre-market trading. This reflects positive investor sentiment in response to the company's strong performance metrics and optimistic future outlook.
Frequently Asked Questions
What were Accenture's total revenues for Q4 2024?
Accenture reported total revenues of $16.41 billion for Q4 2024.
How much did Accenture declare as its quarterly cash dividend?
Accenture declared a quarterly cash dividend of $1.48 per share.
What is the significance of Accenture’s new bookings?
Accenture achieved new bookings of $20.1 billion in Q4, indicating strong market demand and client growth.
What is Accenture's outlook for the first quarter of FY 2025?
Accenture expects first-quarter revenues between $16.85 billion and $17.45 billion.
How did investors react to Accenture's Q4 earnings report?
Investors responded positively, with ACN stock rising by 3.55% post-announcement.
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