Accenture Advances on Beat and Raise

Accenture (ACN) reported better-than-expected earnings and raised its EPS guidance late Wednesday, lifting its shares 4.4% to $36.50 in extended trading to reverse its regular session loss of 1.3% to $34.96. Accenture's fiscal Q1 net income climbed 34% to $381 million, or $0.60/share versus analyst estimates of $0.56. Revenues rose 19% to $5.67B, beating expectations of $5.46B. Accenture said for the full fiscal year it now expects EPS of $2.36 to $2.41/share, or fifteen cents higher than its prior forecast. Analysts had been expecting $2.26/share, on average. Accenture reaffirmed its FY revenue growth outlook of 9% to 12%, compared to analyst estimates of 11.2% growth. Fiscal Q2 revenue is seen coming in between $5.5B to $5.7B, ahead of analysts' average projection of $5.3B.

Accenture's beat and raise is being regarded as a sign of confidence by the company, especially considering ongoing concerns over the strength of the U.S. economy. In late Sept., CEO William Green called subprime an "isolated phenomenon." During Wednesday's conference call, Mr. Green said the company is keeping "a very close eye on global economic trends," but noted the firm's Q1 results "demonstrate rich opportunities exist for the right services." Shares of Accenture were last up 5% to $36.70 in thin pre-market trading.

Sources: Press release, Bloomberg, Thomson Financial
Additional Reading: Citi Sees Accenture Beating Estimates • Goldman Cuts Estimates, Targets for Slew of Tech Stocks

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