Workflow
Accenture Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
ACNAccenture(ACN) ZACKS·2024-12-19 18:31

Core Insights - Accenture plc (ACN) reported better-than-expected first-quarter fiscal 2025 results, with earnings per share of 3.6,exceedingtheZacksConsensusEstimateby6.23.6, exceeding the Zacks Consensus Estimate by 6.2% and increasing 28.7% year-over-year [2][3] - Total revenues reached 17.7 billion, surpassing the consensus estimate by 3.1% and showing a year-over-year growth of 9.1% [2] Revenue Breakdown - Managed services revenues were 8.6billion,up118.6 billion, up 11% year-over-year, exceeding the estimate of 8.2 billion [4] - Consulting revenues increased 7% year-over-year to 9billion,beatingtheprojectionof9 billion, beating the projection of 8.9 billion [4] - Health and public service revenues grew 13% year-over-year to 3.8billion,surpassingexpectationsof3.8 billion, surpassing expectations of 3.7 billion [5] - Resources segment revenues were 2.4billion,rising62.4 billion, rising 6% year-over-year, meeting estimates [5] - Product segment revenues reached 5.4 billion, increasing 12% year-over-year, outpacing the estimate of 5.2billion[5]−Communications,media,andtechnologyrevenueswere5.2 billion [5] - Communications, media, and technology revenues were 2.9 billion, up 7% year-over-year, meeting estimates [6] - Financial services revenues grew 4% year-over-year to 3.2billion,surpassingtheestimateof3.2 billion, surpassing the estimate of 3.1 billion [6] Geographic Performance - Revenues from the Americas were 8.7billion,up98.7 billion, up 9% year-over-year, beating projections of 8.6 billion [7] - EMEA revenues reached 6.4billion,gaining106.4 billion, gaining 10% year-over-year, exceeding estimates of 6 billion [7] - Asia Pacific revenues were 2.5billion,increasing62.5 billion, increasing 6% year-over-year, meeting projections [7] Booking Trends - Total bookings for the first quarter were 18.7 billion, rising 1% year-over-year [8] - Consulting bookings were 9.2billion,whilemanagedservicesbookingswere9.2 billion, while managed services bookings were 9.5 billion [8] Operating Results - Gross margin for the first quarter was 32.9%, down 70 basis points year-over-year [9] - Adjusted operating income rose 9% year-over-year to 2.7billion,withanadjustedoperatingmarginof16.72.7 billion, with an adjusted operating margin of 16.7% [9] Financial Position - Cash and cash equivalents at the end of the quarter were 8.3 billion, up from 5billionattheendofthepreviousquarter[10]−Thecompanygenerated5 billion at the end of the previous quarter [10] - The company generated 1 billion in cash from operating activities, with capital expenditure of 152.2million[10]−Freecashflowwasreportedat152.2 million [10] - Free cash flow was reported at 870 million, with share repurchases totaling 2.5 million shares for 898million[11]Guidance−Forfiscal2025,Accentureraiseditsrevenuegrowthguidanceto4−7898 million [11] Guidance - For fiscal 2025, Accenture raised its revenue growth guidance to 4-7% in local currency, up from the previous guidance of 3-6% [12] - Expected operating cash flow is projected between 9.4 billion and 10.1billion,withfreecashflowanticipatedbetween10.1 billion, with free cash flow anticipated between 8.8 billion and $9.5 billion [12]