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Accenture Shares Up as Third-Quarter Results Beat Estimates

Accenture's third-quarter numbers beat analysts' forecasts. Revenue growth was at the top end of its guided range, the CEO said.
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Accenture  (ACN) - Get Free Report shares on Thursday rose after the Dublin consulting firm reported stronger-than-expected fiscal-third-quarter earnings and revenue.

In the quarter ended May 31, net income registered $1.25 billion, or $1.90 a share, down from $1.27 billion, or $1.93, in the year-earlier quarter. Analysts surveyed by FactSet had estimated the latest per-share number at $1.85.

Accenture revenue came in at $10.99 billion, down 1% from $11.1 billion in the year-earlier quarter. Analysts on average in the FactSet survey forecast $10.72 billion for the latest quarter.

“We delivered third-quarter financial results that aligned with our expectations, including revenue growth in the top end of our guided range as well as strong profitability and free cash flow,” Accenture Chief Executive Julie Sweet said in a statement.

In the latest quarter, Accenture bought back or redeemed $627 million of shares. Repurchases and redemptions totaled $2.33 billion for the first three quarters of fiscal 2020.

Accenture had $1.9 billion of share-buyback authority remaining as of May 31.

It expects fourth-quarter revenue to total $10.6 billion to $11 billion, a range of down 3% to up 1% from a year earlier. FactSet's survey is looking for $10.77 billion.

For the full fiscal year, it anticipates earnings per share of $7.57 to $7.70, compared with $7.48 to $7.70 previously. Analysts currently project $7.57 a share.

And for fiscal 2020 Accenture estimates revenue growth of 3.5% to 4.5%, compared with 3% to 6% previously. 

Accenture shares recently traded at $212.38, up 5.2%. They have jumped 29% during the past three months.