Accenture Plc (NYSE:ACN) posts weak forecast

Accenture Plc (NYSE:ACN) stock fell 2.04% (As on September 23, 11:35:27 AM UTC-4, Source: Google Finance) after the company warned this year’s dollar surge would hurt its fiscal 2023 results, even as robust demand for digital offerings helped the IT services major top quarterly earnings estimates. Accenture, which generates more than half of its revenue from outside the United States, expects a 6% hit to results from the dollar in fiscal 2023. Accenture reported new bookings of $18.40 billion for the fourth quarter ended Aug. 31, its second highest on record. Consulting revenues of $8.33 billion increased 14% from the year-ago fiscal quarter’s reading on a reported basis and 22% in terms of local currency. Outsourcing revenues of $7.09 billion increased 16% from the year-ago fiscal quarter’s number on a reported basis and 23% in terms of local currency.

Moreover, Communications, Media & Technology revenues of $3.08 billion improved 16% from the year-ago fiscal quarter’s actuals on a reported basis and 23% in terms of local currency. Financial Services revenues of $2.94 billion increased 13% from the year-ago fiscal quarter’s reading on a reported basis and 22% on local currency basis. Health & Public Service revenues of $2.89 billion increased 15% from the year-ago fiscal quarter’s reading on a reported basis and 19% in terms of local currency. Products revenues of $4.48 billion grew 16% from the year-ago fiscal quarter’s number in U.S. dollars and 25% in terms of local currency. Resources revenues of $2.03 billion increased 13% from the year-ago fiscal quarter’s level on a reported basis and 21% in local currency.

ACN in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.60, beating the analysts’ estimates for the adjusted earnings per share by 1.2%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 15 percent to $15.4 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue by 0.2%. Accenture exited fourth-quarter fiscal 2022 with a total cash and cash equivalent balance of $7.89 billion compared with $5.64 billion at the end of the prior fiscal quarter. Long-term debt was $45.9 million compared with $55.8 million at the end of the prior fiscal quarter.

Accenture raised its dividend by 15% to $1.12 per share and said it would buyback shares worth an additional $3 billion.

The company’s first-quarter revenue forecast of $15.20 billion to $15.75 billion was also below the $16.07 billion expected by analysts, according to Refinitiv data.

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