- Accenture’s first-quarter revenue was $17.69 billion, exceeding the expected $17.15 billion and marking a 9% increase from the previous year.
- Revenue from Communications, Media & Technology reached $2.86 billion, a 7.1% increase, surpassing the estimate of $2.81 billion.
- Financial Services revenue grew by 4.5% year-over-year to $3.17 billion, beating the projected $3.01 billion.
- Product revenue achieved $5.43 billion, reflecting a 12% rise, and exceeded the expected $5.12 billion.
- Accenture’s Earnings Per Share (EPS) hit $3.59, compared to $3.10 from the previous year.
- Health & Public Service revenue rose by 13% to $3.81 billion, above the estimate of $3.69 billion.
- Resources revenue was $2.42 billion, an increase of 6.2%, surpassing the estimate of $2.36 billion.
- Operating cash flow significantly increased to $1.02 billion from $498.6 million the previous year, although slightly below the estimated $1.06 billion.
- The operating margin improved to 16.7%, up from 15.8% last year.
- Accenture projects second-quarter fiscal 2025 revenues between $16.2 billion and $16.8 billion, with an expected 5% to 9% growth in local currency.
- The company anticipates a negative 2.5% foreign-exchange impact compared to the second quarter of fiscal 2024.
- Fiscal 2025 operating cash flow is expected to range from $9.4 billion to $10.1 billion, with property and equipment additions estimated at $600 million, and free cash flow between $8.8 billion and $9.5 billion.
- Julie Sweet, Accenture’s CEO, emphasizes the company’s strategy to lead client reinvention while investing in business as key to a strong start in fiscal 2025.
- Analyst recommendations include 19 buys, 9 holds, and 1 sell.
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Accenture Plc Cl A on Smartkarma
Accenture Plc Cl A has drawn the attention of analysts on Smartkarma, including Baptista Research. Baptista Research delves into various aspects of Accenture’s performance, focusing on key drivers such as strategic bolt-on acquisitions. In their report titled “Accenture plc: How Is Its Approach Towards Strategic Bolt-On Acquisitions Working Out? – Major Drivers,” they analyze the company’s recent fourth-quarter results, emphasizing its strengths and setbacks. The research highlights Accenture’s dedication to technological advancements like Generative AI (GenAI) and its ability to adapt to market demands to drive future valuation through a Discounted Cash Flow (DCF) methodology.
Furthermore, Baptista Research continues its coverage with another report titled “Accenture plc: How They Are Enabling Growth Through Acquisitions,” showcasing Accenture’s dynamic performance amid evolving client spending patterns. The analysis underscores a shift towards larger transformation projects over smaller discretionary ones, impacting revenue conversion and decision-making timelines for Accenture. As these independent analysts explore the company’s strategies and financial outcomes, investors gain insights into the potential growth opportunities and challenges shaping Accenture’s market position.
A look at Accenture Plc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Accenture PLC, a leading provider of management and technology consulting services, is poised for a positive long-term outlook based on the Smartkarma Smart Scores evaluation. With a strong Resilience score of 4, the company is well-positioned to weather potential economic downturns and market fluctuations. Additionally, Accenture’s Momentum score of 4 signifies consistent growth and positive investor sentiment, reflecting a promising trajectory for the company’s future performance.
Although there is room for improvement in areas such as Value, Growth, and Dividend, with scores of 2, 3, and 3 respectively, Accenture’s overall Smart Scores paint a picture of a company with solid fundamentals and growth potential. As Accenture continues to deliver specialized capabilities and solutions to clients globally, its diversified business model encompassing consulting, technology, outsourcing, and alliances bodes well for its sustained success in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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