Accenture Surges on Earnings Beat, Raised Outlook

Accenture, the consulting company, raises its full-year revenue growth forecast.
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Accenture  (ACN) - Get Report was climbing Thursday after the consulting, technology and outsourcing service provider beat Wall Street's fiscal first-quarter earnings expectations.

Shares of the Dublin-based company were rising 7.05% to $265 in premarket trading.

Accenture reported net income of $1.5 billion, or $2.32 a share, up from $1.36 billion, or $2.09 a share, a year ago. Adjusted earnings per share rose to $2.17 compared with $2.01 a year ago, and beat the FactSet consensus of $2.05.

Revenue totaled $11.76 billion, up 4% from a year ago and was ahead of the FactSet consensus of $11.28 billion. 

New bookings increased 25% to $12.9 billion, with consulting bookings of $6.6 billion and outsourcing bookings of $6.3 billion.

Accenture said it repurchased or redeemed 3.3 million shares for a total of $769 million, including about 2.9 million shares repurchased in the open market.

Looking ahead, Accenture said it expects second-quarter revenue of $11.55 billion to $11.95 billion, compared with the FactSet consensus of $11.39 billion. The company also raised its full-year revenue growth forecast to 4% to 6% from 2% to 5%.

The company said it expects adjusted fiscal 2021 earnings to be in the range of $8.02 to $8.25 a share, up 8% to 11% from fiscal 2020.

Accenture said in a statement that the company's second-quarter and full-year 2021 business outlook "reflects its assumptions, as of today, regarding the continued effect of the coronavirus pandemic." 

"I am pleased that we delivered first-quarter revenues above our expectations, with broad-based improvement across industries and geographic markets, reflecting the relevance of our services, the strength of our growth strategy and the advantages of our scale in digital, cloud and security," CEO Julie Sweet said.