Thu, Sep. 24, 8:28 AM
- Accenture (NYSE:ACN) -4.4% premarket despite beating FQ4 earnings and revenue expectations, as it guides its Q1 revenue outlook below Wall Street estimates.
- ACN foresees FQ1 revenues of $7.70B-$7.95B vs. $8.12B analyst consensus estimate, due mainly to a stronger dollar; for FY 2016, ACN sees EPS of $5.09-$5.24 vs. $5.22 consensus, and revenues up 1%-4% (up 5%-8% in local currency) to $31.3B-$32.3B vs. $32.6B consensus.
- For FQ4, revenue before reimbursements rose 1.4% to a better than expected $7.89B, but excluding currency impacts, revenue would have grown 12%.
- FQ4 consulting business revenue rose 14% Y/Y in local currency terms, and revenue in the outsourcing business gained 9%; consulting accounts for slightly more than half of ACN's total revenue, while outsourcing contributes the rest.
- ACN's board also approves $5B in additional share repurchase authority.
- Also: Accenture declares $1.10 dividend
Thu, Sep. 24, 7:01 AM
Wed, Sep. 23, 5:30 PM
Thu, Jun. 25, 9:38 AM
- With an FQ3 beat in tow, Accenture (NYSE:ACN) now forecasts FY15 (ends in August) adjusted EPS of $4.73-$4.78 vs. a prior $4.66-$4.76; consensus is at $4.74. FY15 constant currency revenue growth guidance has been hiked to 9%-10% from 8%-10%; consensus in U.S. dollars is 1.7%. Free cash flow guidance remains at $3.4B-$3.7B.
- Bookings: New consulting bookings rose by $200M Y/Y to $4.5B; new outsourcing bookings fell by $500M to $4B. Forex had a 10% impact on new bookings. Accenture still expects FY15 new bookings of $33B-$35B.
- Geographic performance: North American revenue +11% Y/Y to $3.6B. Europe -10% to $2.7B (+7% exc. forex). Growth markets -2% to $1.5B (+13% exc. forex).
- Segment performance: Telecom/media/tech revenue +8% to $4.7B. Financial services +2% to $4.9B. Health/public service +9% to $4.1B. Products +4% to $5.6B. Resources -2% to $3.8B.
- Financials: $518M was spent on buybacks (lifted EPS). Gross margin fell 30 bps Y/Y to 32.5%. Op. margin rose 20 bps to 15.4%, thanks to SG&A falling to 17.1% of revenue from 17.5%. Accenture ended FQ3 with $4B in cash, and $27M in debt.
- Shares have made new highs. They're up 13% YTD.
- FQ3 results, PR
Thu, Jun. 25, 7:03 AM
Wed, Jun. 24, 5:30 PM
Thu, Mar. 26, 1:35 PM
- In addition to beating FQ2 estimates, Accenture (NYSE:ACN) has hiked its FY15 (ends Aug. '15) local currency revenue growth guidance to 8%-10% from 5%-8%. However, forex is now expected to have an 800 bps impact on FY15 revenue growth, up from a prior 500 bps.
- Due to the forex hit (widely expected), FY15 EPS guidance has been cut to $4.61-$4.71 from $4.66-$4.80 (consensus is at $4.75). Likewise, FQ1 revenue guidance of $7.35B-$7.6B (assumes an 1100 bps forex hit) is below a $7.63B consensus.
- New consulting bookings fell by $400M Y/Y in FQ2 to $4.2B, and new outsourcing bookings by $400M to $5.1B. Forex had a 600 bps impact on bookings growth.
- North American revenue was a strong point, rising 13% Y/Y to $3.41B. Europe fell 2% to $2.66B (700 bps forex hit), and "growth markets" rose 3% to $1.42B (900 bps forex hit). Telecom/media/tech revenue +8%; financial services +2%; health/public service +12%; products +6%; resources -1%.
- Hurting EPS: Gross margin fell to 29.9% from 31.3% a year ago. Boosting EPS: SG&A spend fell to 16.3% of revenue from 17.9%, and $601M was spent to buy back 6.8M shares. Free cash flow was $220M, below net income of $743M.
- Shares have surged to new highs.
- FQ2 results, PR
Thu, Mar. 26, 7:03 AM
Wed, Mar. 25, 5:30 PM
Dec. 18, 2014, 1:14 PM
- In addition to beating FQ1 estimates, Accenture (ACN +4.3%) has hiked its guidance for FY15 (ends Aug. '15) local currency revenue growth to 5%-8% from 4%-7%. On the other hand, forex is now expected to have 500 bps impact on revenue, up from a prior 200 bps.
- As a result, FY15 EPS guidance has been lowered to $4.66-$4.80 from $4.74-$4.88 - consensus is at $4.81 - and FQ2 revenue guidance of $7.25B-$7.5B is mostly below a $7.46B consensus. The market appears to have discounted forex pressures in advance.
- FQ1 new bookings totaled $7.7B, down from $8.7B a year ago. Consulting bookings fell to $3.9B from $4.3B, and outsourcing bookings to $3.8B from $4.4B.
- Gross margin fell 110 bps Y/Y to 32.2%, but cost controls helped SG&A spend fall to 17.1% of revenue from 18.7%. As a result, op. margin rose 20 bps to 15%. $670M was spent on buybacks.
- North America revenue +11% to $3.44B; Europe +5% to $2.91B; "Growth Markets" +3% to $1.55B. Forex respectively had 400 bps and 600 bps impacts on Europe and Growth Markets revenue growth.
- Accenture has made new highs. Outsourcing rivals Infosys (INFY +3%), Wipro (WIT +4.9%), and Cognizant (CTSH +4.3%) are also outperforming on a good day for equities.
- FQ1 results, PR
Dec. 18, 2014, 7:03 AM
Dec. 17, 2014, 5:30 PM
Sep. 24, 2014, 7:05 AM
Sep. 23, 2014, 5:30 PM
Aug. 6, 2014, 9:43 AM
- Though its Q2 revenue was in-line, Cognizant (NASDAQ:CTSH) expects Q3 revenue of $2.55B-$2.58B and EPS of $0.63+ vs. a consensus of $2.66B and $0.60. Full-year guidance is for 14%+ revenue growth and EPS of $2.54+ vs. a consensus for 16.9% growth and EPS of $2.38.
- The company blames its top-line softness on "weakness at certain clients and longer than anticipated sales cycles for certain large integrated deals." The IT outsourcing industry in general has been pressured by a growing customer preference for smaller deals, and (in certain segments) the adoption of cloud services.
- Gross margin fell 70 bps Y/Y to 40.4%, and SG&A spend rose 15% to $483M. Cognizant spent over $100M on buybacks, and has increased its buyback authorization by $500M; $900M remains available under the company's buyback program.
- Peers Infosys (INFY -4.2%), Wipro (WIT -2.5%), and Accenture (ACN -1.5%) are also trading lower. Infosys dropped last month after providing cautious remarks about near-term demand to go with an EPS beat.
- Q2 results, PR
Jun. 26, 2014, 12:35 PM
- Though Accenture (ACN -1%) beat FQ3 estimates, it now expects FY14 (ends Aug. '14) EPS to be in a range of $4.50-$4.54. That's at the low end of a prior $4.50-$4.62 range, and compares with a $4.53 consensus. FQ4 revenue guidance of $7.45B-$7.7B is in-line with a $7.56B consensus.
- New bookings totaled $8.8B in FQ3 - $4.3B consulting, $4.5B outsourcing - up from $8.3B a year ago and down from $10.1B in seasonally strong FQ2. FY14 new bookings are now expected to be at the high end of a prior $33B-$36B guidance range.
- Geographical performance: Americas sales +6% Y/Y vs. +2% in FQ2; EMEA +13% vs. +2%, Asia-Pac (hurt by forex) -1% vs. +7%.
- Segment performance: Telecom/media/tech +7% vs. flat; financial services +7% vs. +4%, health/public +10% vs. -1%; products +11% vs. +4%; resources +2% vs. -2%.
- Gross margin +150 bps Q/Q and -110 bps Y/Y to 32.8%. SG&A spend fell to 17.5% of revenue from 17.9% in FQ2 and 18.7% a year ago. $441M was spent to buy back 4.8M shares.
- FQ3 results, PR
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