Accenture Raises Full-Year Guidance

Management consulting firm Accenture (ACN) raised its full-year guidance on Thursday as it posted better-than-expected results for its fiscal third quarter which were supported by rising demand for its services across all of the regions in which it operates.

The New York-headquartered company reported revenue of $11.1 billion in the three months ended May 31, up from $10.69 billion in the corresponding quarter of the prior year. This was also ahead of the consensus estimate of analysts polled by Capital IQ for $11.03 billion.

Broken down by type of work, consulting generated $6.24 billion, up from $6.06 billion a year earlier while outsourcing revenue rose to $4.86 billion, up from $4.63 billion a year earlier. By region, the US was the single largest revenue generator, accounting for sales of $5.15 billion compared to $4.74 billion a year earlier.

Diluted earnings per share came in at $1.93, up from $1.60 a year earlier and also ahead of the Street’s forecast for $1.89 per share.

“We remain confident in our ability to continue delivering profitable growth and significant value for our clients and shareholders,” David Rowland, interim chief executive of Accenture, said.

For the fourth quarter, Accenture is targeting revenues to be in the range of $10.85 billion to $11.15 billion, representing 5% to 8% growth in local currency, reflecting the company’s assumption of a negative 2% foreign-exchange impact compared with the fourth quarter of fiscal 2018.

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