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Accenture Higher After Earnings Beat, Guidance Raised

Accenture shares are up. The CEO points to 'continued momentum driven by the demand for digital transformation.'
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Accenture  (ACN)  rose Thursday after the consulting, technology and outsourcing service company beat Wall Street's third-quarter-earnings expectations and raised its guidance.

Shares of the Dublin company at last check were up 1.9% to $291.01. 

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For the quarter ended May 31 Accenture reported net income of $1.55 billion, or $2.40 a share, compared with $1.23 billion, or $1.90 a share, in the year-earlier quarter. The FactSet consensus called for earnings of $2.24 a share.

Revenue increased 21% from a year earlier to $13.3 billion, compared with FactSet's call for $12.8 billion.

Consulting revenue totaled $7.26 billion, up 21%, while outsourcing revenue rose 20% to $6 billion. New bookings rose 39% to $15.4 billion.

Looking ahead, Accenture said it expected fourth-quarter revenue to range $13.1 billion to $13.5 billion, while the FactSet consensus is calling for $12.6 billion.

For fiscal 2021, Accenture said its earnings should range from $8.71 to $8.80 a share, up 17% to 18% from a year earlier. The company previously expected fiscal 2021 earnings to range $8.32 to $8.50. FactSet is calling for earnings of $8.51 a share.

The company now expects annual revenue growth to rise 10% to 11% in local currency, compared with 6.5% to 8.5% previously. FactSet is calling for annual revenue of $49.21 billion.

In addition, Accenture said it now expected operating-profit margin for the full fiscal year to be 15.1%, an expansion of 0.4 percentage point from fiscal 2020. The company previously expected operating margin to expand 0.3  to 0.4 percentage point.

The results were "driven by the demand for digital transformation" and the business's strength across geographies, industries and services, Chief Executive Julie Sweet said in a statement.

In March, Accenture reported better-than-expected second-quarter earnings and, in December the company beat Wall Street's first-quarter expectations.

Accenture missed Wall Street's fourth-quarter expectations in September.