Accenture plc (NYSE:ACN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.7%.
Accenture plc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 10.68% to $1.14 in the quarter versus EPS of $1.03 in the year-earlier quarter.
Revenue: Decreased 5.8% to $7.2 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Accenture plc reported adjusted EPS income of $1.14 per share. By that measure, the company beat the mean analyst estimate of $1.13. It missed the average revenue estimate of $7.42 billion.
Quoting Management: Pierre Nanterme, Accenture’s chairman and CEO, said, “Our third-quarter results were solid overall, although consulting revenues were below our expectations. We delivered very good profitability, with operating margin expansion and EPS growth reflecting the disciplined management of our business. Quarterly new bookings of $8.3 billion brought us to nearly $25 billion for the first three quarters of the year, which positions us well for the future and demonstrates the relevance of our services and capabilities to the needs of our clients. Our balance sheet remains very strong, with a cash balance of $5.9 billion, and we generated $1.4 billion in free cash flow for the quarter.”
Key Stats (on next page)…