Accenture’s (ACN) Q1 results beat estimates

Accenture (NYSE: ACN) beat revenue and earnings estimates for the first quarter of 2020. Shares were up slightly in premarket hours on Thursday.

The company reported a 7% growth in total revenue to $11.4 billion, beating estimates of $11.1 billion. Revenues grew 9% in local currency.

Net income attributable to Accenture plc rose 6% to $1.35 billion compared to last year. Diluted EPS grew 7% to $2.09, surpassing forecasts of $2.00.

New bookings were $10.3 billion, with consulting bookings of $6 billion and outsourcing bookings of $4.3 billion. Consulting revenues grew 7% year-over-year to $6.38 billion while outsourcing revenues rose 7% to $4.98 billion.

During the quarter, the company saw revenue increases across all its operating groups and geographic regions. Days services outstanding, or DSOs, were 43 days at Nov. 30, 2019, compared to 42 days at Nov. 30, 2018.

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Accenture expects revenues for the second quarter of 2020 to be $10.85 billion to $11.15 billion, reflecting a growth of 5-8% in local currency.

The company updated its guidance for fiscal year 2020 and now expects revenue growth to be 6-8% in local currency compared to the previous range of 5-8%. Diluted EPS is now expected to be $7.66 to $7.84 compared to the prior range of $7.62 to $7.84.

Accenture declared a quarterly cash dividend of $0.80 per share, payable on February 14, 2020 to shareholders of record on January 16, 2020.

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