Accenture beats earnings estimates as revenue jumps 16%

Professional services company Accenture (ACN) reported Q3 earnings that topped analysts estimates. During the quarter, the company reported earnings of $1.60 a share. Excluding items, the company’s earnings rose 18% to $1.79 per share, beating the consensus estimate of $1.72 per share.

Revenue during the quarter rose 16% to $10.3 million. Analysts estimated revenues of $10.04 million. The company also reported new bookings of $11.7 billion. The new bookings reflect a positive 5% foreign-currency impact when compared to prior year period.

The upbeat results during the quarter was aided by the company’s push into digital, cloud and security services, which now account for nearly 60% of total revenues. This is helping the company grab market share from its rivals. The company has been on a shopping spree. This year alone, it made five acquisitions and nearly 70 in the last three years.

“We continue to invest to build highly differentiated capabilities and capture new growth opportunities. These investments and our innovation-led approach position us very well to continue gaining market share and delivering value for our clients and shareholders,” said Pierre Nanterme, CEO.

Accenture updated its guidance for fiscal 2018. The company now expects net revenue growth to be in the range of 9.5-10% in local currency, compared with 7-9% previously. GAAP earnings is now expected to be in the range of $6.26-$6.31 per share, and adjusted earnings is touted to be in the range of $6.66-$6.71per share.

On May 15, 2018, the company declared a semi-annual cash dividend of $1.33 per share that was paid on Accenture plc Class A ordinary shares to shareholders of record on April 12, 2018. Shares of the Dublin-based company rose 1.97% during the pre-market trading.