Accenture Raises Guidance

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The FINANCIAL — Accenture PLC on June 25 raised its full-year guidance, citing a weaker-than-expected impact from the strong dollar, which also buoyed its results for the May quarter, according to Nasdaq.

For the year ending in August, the consulting firm now expects net revenue growth in local currency of 9% to 10%, up from 8% to 10% previously. It predicts full-year adjusted earnings between $4.73 and $4.78 a share, compared with a previous range of $4.66 to $4.76. Analysts polled by Thomson Reuters had called for $4.74 a share.

For the current quarter, Accenture forecast net revenue between $7.45 billion and $7.70 billion, while analysts had forecast $7.58 billion. The guidance assumed a 10% negative impact from foreign exchange.

Accenture’s earnings have grown steadily in recent years, while its outsourcing and consulting businesses have enjoyed strong growth. Accenture was tapped last year to help fix the embattled HealthCare.gov website, and in December said it won a five-year $563 million contract to continue its work on the federal insurance site.

The consulting unit’s net revenue grew 1% to $4.11 billion. Revenue from outsourcing was about flat at $3.66 billion.

Overall, Accenture reported third-quarter earnings of $793.7 million, down from $817.3 million in the prior-year period. On a per-share basis, earnings fell to $1.24 from $1.26. But excluding a pension settlement charge, earnings rose to $1.30 a share.

Analysts had projected earnings of $1.23 a share.

Net revenue, or revenues before reimbursements, grew 0.4% to $7.77 billion from $7.74 billion a year earlier. Foreign exchange took 10% off revenue, lower than the 11% impact the company had expected.

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Accenture had forecast net revenue to be between $7.35 billion and $7.60 billion.

Shares of Accenture were up 0.2% in light premarket trade and have increased about 9% this year through Wednesday’s close.

 

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