Accenture early Tuesday reported fiscal first-quarter earnings and revenue that topped Wall Street estimates amid its acquisition spree. Meanwhile, the company's February quarter revenue outlook for ACN stock came in below expectations.
Accenture earnings for the quarter ended Nov. 30 rose 6% to $3.27 per share on an adjusted basis, said the Dublin-based global tech services and consulting firm. Including acquisitions, revenue climbed 3% to $16.2 billion, Accenture said.
Analysts expected Accenture earnings of $3.14 a share on sales of $16.17 billion. A year earlier, Accenture earned $3.08 a share on sales of $15.75 billion.
"Accenture's adjusted EPS of $3.27 beat consensus estimates by 13 cents, given disciplined expense management, higher-than-expected interest income and lower-than-forecasted taxes," said Evercore ISI analyst David Togut in a report.
Bookings rose 14% to $18.4 billion.
On the stock market today, ACN stock dipped a fraction to close at 341.51. ACN stock had advanced 29% this year heading into the Accenture earnings report.
ACN stock ended Monday's session above a cup base entry point of 330.44. Accenture stock traded within a 5% buy zone.
ACN Stock: Revenue Outlook Light
For its fiscal second quarter, which ends in February, Accenture said it expects revenue in a range of $15.4 billion to $16 billion. Analysts called for revenue of $16.25 billion.
"Guidance for flat year-over-year fiscal second-quarter revenue was below street expectations driven by weakness in the U.K., particularly in banking and capital markets," said William Blair analyst Maggie Nolan in a report.
For the full fiscal year, Accenture maintained guidance for 2% to 5% revenue growth.
"Included within the guide, we assume, are 2% points of acquisition-related revenues," said Jefferies analyst Surinder Thind in a report.
In 2023, Accenture hiked its quarterly dividend by 15% to $1.29 a share. It also added $4 billion to a stock buyback program.
Meanwhile, Accenture continues to make acquisitions to move into digital marketing, cloud computing services and artificial intelligence.
Further, ACN stock has a Relative Strength Rating of 84 out of a best-possible 99, according to IBD Stock Check Up.
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