Accenture tops Q1 estimates; updates full-year outlook

Accenture (ACN) topped market estimates on both revenue and earnings for the first quarter of 2019 and updated its guidance for the full fiscal year. Shares were up 2% during premarket hours on Thursday.

Total revenues were $10.6 billion, up 7% in US dollars and 9.5% in local currency, compared to the same period last year. Consulting revenues grew 8% in US dollars and 10% in local currency while Outsourcing revenues rose 7% in US dollars and 9% in local currency.

Net income grew 9% to $1.29 billion, or $1.96 per share, versus the prior-year quarter, helped by higher revenue and operating results.

New bookings for the quarter were $10.2 billion, reflecting a negative 2% foreign currency impact compared to the prior-year period.

Accenture posted revenue increases across all its operating groups, except Financial Services, which saw a decline of 1% in US dollars. The company saw broad-based revenue growth across all its geographic regions during the quarter.

In November, Accenture paid a semi-annual cash dividend of $1.46 per share, which totaled $933 million and represented a 10% increase over the previous semi-annual dividend declared in March.

Accenture earnings preview: Wall St sees broad-based growth in Q1

For the second quarter of 2019, Accenture expects revenues to come in the range of $10.10 billion to $10.40 billion, reflecting a growth of 6-9% in local currency and the assumption of a negative 4% foreign exchange impact versus the same period last year.

Accenture updated its outlook for the full fiscal year of 2019 based on the assumption of a negative 3% foreign-exchange impact on its results in US dollars versus the previous assumption of negative 2.5%. The company expects revenues to grow 6-8% in local currency versus the previous range of 5-8%. Diluted EPS is expected to be $7.01 to $7.25 versus the prior range of $6.98 to $7.25.

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