Accenture Beats Forecasts

Updated from 4:57 p.m. EDT

SAN FRANCISCO -- Consulting and outsourcing giant Accenture (ACN Quote) beat fourth-quarter revenue and profit targets, downplaying concerns about a slowing economy and the strength of its financial services clients.

Accenture reported Thursday that net income fell to $317 million, or 50 cents a share, from $346 million, or 56 cents a share a year earlier, because of a tax gain in 2006.

Adjusting for the tax gain, Accenture earned 50 cents a share, beating analysts' average estimate of 48 cents, according to Thomson Financial.

Net revenue, or revenue excluding reimbursements, rose 29% to $5.11 billion, also topping expectations. Factoring out currency exchange effects, revenue rose 23%. New bookings totaled $4.9 billion, slightly lower than a year earlier.

"We achieved double-digit revenue growth in U.S. dollars and growth in local currency across all of our operating groups and geographies, leading to our highest quarterly and annual revenues ever," said Chief Executive William D. Green in a statement.

Consulting was 60% of revenue and outsourcing was 40%. In a conference call following the financial report, Chief Financial Officer Pam Craig said she expects this ratio will be maintained in the near-term.

Although consulting contracts have higher profit margins, some investors have anticipated that Accenture's breakdown of revenue would shift toward outsourcing contracts that are longer-term in nature and less susceptible to broader economic trends.