The Growth Story at Accenture Continues with Strong Earnings
A dividend increase helped boost shares of Accenture in after-hours trading, even with the stock trading near its 52-week high. And, as can be expected, a good earnings report added to investor interest. Analysts also like the stock, which received two upgrades recently, following the company’s third-quarter earnings report.
The business services company reported $0.66 eps, beating expectation by $0.03, on 5.3 percent greater revenues over the year-ago period. For the year, the company earned $2.66 per share on revenues of over $21 billion and increased it outlook for annual eps growth to between 13and 16 percent.
The 20 percent dividend increase, from $0.38 to $0.45, boosted the yield for the semi-annual dividend to over 2 percent.
Accenture Limited (NYSE: ACN)
The company’s fourth quarter results continue the growth momentum from the previous quarter and the outlook looks bright going forward. Both consulting and outsourcing revenues made healthy gains. The company also made internal improvements, repurchased stock, and boosted its operating margin and cash per share. As a services company, ACN is a high-margin, cash business with streamlined operations and less risk. As long as technological, financial, and business changes continue to accelerate at a rapid pace, the company looks well-positioned to capitalize on opportunities at home and abroad into the next year.
Disclosure: No positions.