Categories Analysis, Technology

Main points from Accenture’s (ACN) Q3 2024 earnings report

Adjusted EPS is now expected to be $11.85-12.00 in 2024

Shares of Accenture (NYSE: ACN) rose 6% on Thursday, following the company’s announcement of its third-quarter 2024 earnings results. Although revenue and profits missed expectations, the stock jumped after the company reported that it had achieved a new milestone in Generative AI sales. Accenture also updated its guidance for the full year. Here are the main points from the earnings report:

Results miss estimates

Accenture’s revenues for Q3 2024 dipped 1% year-over-year to $16.47 billion, missing the consensus estimate of $16.55 billion. GAAP EPS dropped 3% from last year to $3.04. Adjusted EPS declined 2% to $3.13, missing the target of $3.15.

Generative AI – new milestone

Accenture’s new bookings for the third quarter totaled $21.06 billion, up 22% YoY. Consulting new bookings were $9.28 billion while Managed Services new bookings were $11.78 billion. The company achieved Generative AI new bookings of over $900 million in the quarter, reaching a total of $2 billion year-to-date.

Consulting revenues decreased 3% YoY to $8.46 billion in Q3 while Managed Services revenue increased 2% to $8.01 billion. By segment, Accenture saw revenues decrease in the Communications, Media & Technology, and Financial Services segments while Health & Public Service, Products, and Resources recorded revenue growth.

By geography, revenues in North America rose 1% to $7.83 billion while EMEA revenues fell 2% to $5.78 billion. Growth Markets revenues decreased 4% to $2.86 billion.

Updated outlook

For fiscal year 2024, Accenture now expects revenue growth of 1.5-2.5% instead of the previous range of 1-3%. GAAP EPS is now expected to range between $11.29-11.44 versus the previous range of $11.41-11.64. Adjusted EPS is now expected to be $11.85-12.00 versus the prior expectation of $11.97-12.20.

For the fourth quarter of 2024, Accenture expects revenues to range between $16.05-16.65 billion, representing a growth of 2-6% in local currency.

Dividend

Accenture declared a quarterly cash dividend of $1.29 per share for shareholders of record as of July 11, 2024. The dividend, which is payable on August 15, 2024, represents a 15% increase over the quarterly dividend rate of $1.12 per share in FY2023.

Listen to the conference calls as they happen. Don't miss a beat! With AlphaStreet Intelligence, you can listen to live calls and interviews as they happen, so you never have to worry about missing out on important information.

Most Popular

Key metrics from Southwest Airlines’ (LUV) Q2 2024 earnings results

Southwest Airlines Co. (NYSE: LUV) reported its second quarter 2024 earnings results today. Total operating revenues increased 4.5% year-over-year to $7.4 billion. Net income decreased 46.3% to $367 million, or

AbbVie Q2 2024 adj. profit drops despite higher revenues; results beat

Specialty biopharmaceutical company AbbVie, Inc. (NYSE: ABBV) Thursday announced second-quarter 2024 financial results, reporting a decline in adjusted earnings and an increase in revenues. The numbers exceeded estimates. The company

Hasbro (HAS) Q2 2024 Earnings: Key financials and quarterly highlights

Hasbro, Inc. (NASDAQ: HAS) reported its second quarter 2024 earnings results today. Net revenues decreased 18% year-over-year to $995.3 million. Net earnings attributable to Hasbro Inc. were $138.5 million, or

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top