Earnings Alerts

Accenture Plc Cl A (ACN) Earnings: 2025 Operating Cash Flow Forecast Misses Estimates Amid Mixed Quarterly Results

By September 26, 2024 No Comments
  • Accenture forecasts 2025 operating cash flow between $9.4 billion and $10.1 billion, which is below the estimated $10.77 billion.
  • Anticipates revenue growth of 3% to 6%.
  • Operating margin is projected to be between 15.6% and 15.8%.
  • Sees free cash flow between $8.8 billion and $9.5 billion, below the estimate of $9.84 billion.
  • First quarter 2025 revenue forecast is between $16.85 billion and $17.45 billion, closely aligned with the estimate of $16.96 billion.
  • Q4 2024 adjusted EPS stood at $2.79, meeting estimates and up from $2.71 year-over-year.
  • Q4 2024 EPS was $2.66, higher than $2.15 year-over-year.
  • Q4 2024 revenue was $16.41 billion, a 2.6% increase year-over-year, slightly above the $16.39 billion estimate.
  • Communications, Media & Technology revenue was $2.75 billion, a 1.6% increase year-over-year, but below the $2.91 billion estimate.
  • Financial Services revenue was $2.87 billion, a 5.1% decline year-over-year, below the $3.01 billion estimate.
  • Product revenue came in at $4.95 billion, up 4.2% year-over-year, slightly missing the $4.98 billion estimate.
  • Health & Public Service revenue was $3.61 billion, up 10% year-over-year, surpassing the $3.53 billion estimate.
  • Resources revenue was $2.22 billion, down 0.4% year-over-year, below the $2.32 billion estimate.
  • New bookings totalled $20.1 billion, up 21% year-over-year, and exceeded the $18.61 billion estimate.
  • Consulting new bookings were $8.6 billion, a 1.2% increase year-over-year, below the $8.82 billion estimate.
  • Managed Services new bookings soared to $11.6 billion, up 41% year-over-year, and above the $10.15 billion estimate.
  • Gross margin stood at 32.5%, matching estimates and slightly increased from 32.4% year-over-year.
  • Free cash flow was $3.18 billion, a decrease of 1.5% year-over-year.
  • Operating cash flow was $3.39 billion, down 0.6% year-over-year and below the $3.7 billion estimate.
  • Operating margin increased to 14.3%, up from 12% year-over-year.
  • Analyst recommendations: 18 buys, 11 holds, and 1 sell.

Accenture Plc Cl A on Smartkarma



Analyst coverage of Accenture Plc Cl A on Smartkarma showcases valuable insights from Baptista Research. In their report “Accenture plc: How They Are Enabling Growth Through Acquisitions,” Baptista Research highlights Accenture’s dynamic performance in the latest fiscal year. The shift in client spending patterns towards large-scale transformations has impacted revenue conversion, prompting Accenture to strategically pivot to adapt to the changing landscape.

Continuing their analysis, Baptista Research, in the report “Accenture plc: Focused M&A & GenAI Momentum Propelling Their Growth! – Major Drivers,” praises Accenture’s resilience in prospering amidst economic uncertainties. The deep trust clients place in Accenture, combined with its expertise in handling complex work and strategic positioning, has led to significant growth opportunities. The report emphasizes the firm’s momentum in executing sizable deals, positioning Accenture for continued growth as spending trends upward.



A look at Accenture Plc Cl A Smart Scores

FactorScoreMagnitude
Value2
Dividend3
Growth3
Resilience4
Momentum5
OVERALL SMART SCORE3.4

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 Cl A, a company specializing in management and technology consulting services, is positioned favorably for long-term growth according to Smartkarma Smart Scores. With high scores in Momentum, Resilience, and solid ratings in Dividend and Growth, Accenture appears to have a strong outlook. The company’s ability to maintain momentum and adapt to changing market conditions, combined with its resilience and consistent growth potential, suggests a promising future ahead.

Accenture PLC provides a diverse range of specialized capabilities and solutions globally, catering to clients across various industries. With a robust network offering consulting, technology, outsourcing, and alliances, Accenture is well-positioned to capitalize on emerging opportunities and sustain its growth trajectory in the long run. The Smart Scores indicate a generally positive sentiment towards Accenture’s overall performance and prospects for the future.


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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