Accenture reported better-than-expected fiscal fourth-quarter results, driven by impressive double-digit gains in new bookings. The consulting firm anticipates that earnings will grow annually throughout the ongoing fiscal year. During the quarter that ended in August, the company's adjusted earnings reached $2.79 per share, marking an increase from the previous year's figure of $2.71 and surpassing the consensus of $2.77 collected by Capital IQ.
Revenue for the period rose to $16.41 billion, compared to $15.99 billion, exceeding the projected figure of $16.38 billion. However, foreign exchange fluctuations presented a challenge, posing a roughly 2% headwind on the quarter. In premarket trading, the stock saw a significant rise of 4.7%. Consulting revenue experienced a slight uptick of 1%, reaching $8.26 billion, while sales in the managed services division rose by 5% to $8.15 billion.
Notably, new bookings surged by an impressive 21%, totaling $20.1 billion, which comprised $8.6 billion in consulting and $11.6 billion in managed services. The bookings attributed to Accenture's offerings in generative artificial intelligence amounted to $1 billion, bringing the total for fiscal 2024 to a remarkable $3 billion. Julie Sweet, the Chief Executive, commented on the company’s performance, saying, "Our performance in fiscal year 2024 demonstrates the resilience and agility of our business model, the power of our scale and reinvention in action.
We continue to accelerate our leadership in generative AI." Looking ahead to fiscal 2025, Accenture anticipates GAAP earnings in the range of $12.55 to $12.91 per share, indicating a growth range of 10% to 13% over the previous year's figure of $11.44. The Street is projecting earnings of $12.79. Revenue for the upcoming fiscal year is expected to grow between 3% and 6% in local currency, a notable increase from the 2% gain recorded in fiscal 2024. Moreover, foreign exchange is anticipated to have a positive impact on the company’s results by approximately 1.5% in the current fiscal year.
Sweet remarked, "Our successful strategy to lead reinvention for clients and continued investments in our business have positioned Accenture for strong growth in fiscal 2025." For the ongoing three-month period, Accenture forecasts revenue in the range of $16.85 billion to $17.45 billion, aided by a foreign-exchange tailwind of 1.5%.
In local currency, this guidance suggests a growth range of 2% to 6%, aligning with analysts’ revenue forecast of $16.94 billion for the quarter. Price: 353.12, Change: +16.07, Percent Change: +4.77.