Accenture Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results
Intellectia.AI2024-09-26
Accenture Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results
Accenture (NYSE: ACN) released its financial results for the fourth quarter and full fiscal year ended August 31, 2024, demonstrating steady performance despite global economic headwinds.
Key Financial Metrics
The following table summarizes Accenture's key financial metrics:
| Metric | 4QFY24 | 4QFY23 | YoY % Change | Consensus Estimates (Current Quarter) |
|---|---|---|---|---|
| Revenue | $16.41B | $15.99B | +3% | $16.38B |
| GAAP EPS | $2.66 | $2.15 | +24% | $2.78 |
| Adjusted EPS | $2.79 | $2.71 | +3% | N/A |
Accenture achieved above-consensus revenue and aligned with consensus EPS estimates, illustrating strong performance. The company saw a modest increase in revenue and earnings, indicating continued resilience in its operating model.
Revenue Performance by Segment
The following table provides a breakdown of revenue performance across Accenture’s major segments:
| Segment | 4QFY24 Revenue | YoY % Change |
|---|---|---|
| Consulting | $8.26B | +1% |
| Managed Services | $8.15B | +5% |
Both segments showed growth, with Managed Services leading in percentage increase, marking a positive trajectory in service expansion. Consulting, while experiencing lower growth, remained stable.
Key Developments and Operational Highlights
- New bookings of $20.1 billion for the quarter and record $81.2 billion for the full year.
- Generative AI bookings reached $1 billion for the quarter and $3 billion for the full year.
- Improved operating margins, with a GAAP margin of 14.3% for the fourth quarter.
Comments from Company Officers
Julie Sweet, Accenture’s chair and CEO, highlighted the company's resilience and strategic reinvention efforts, emphasizing its record client bookings and leadership in Generative AI. She credited Accenture’s growth to the dedication of its 774,000 employees and the company’s investments in business transformation.
Dividends and Share Repurchase Program
- The Board declared a 15% increase in quarterly dividends to $1.48 per share.
- Additional $4.0 billion in share repurchase authority approved, bringing the total to approximately $6.7 billion.
Forward Guidance
Accenture projects revenue growth of 3% to 6% in local currency for fiscal year 2025, with GAAP EPS expected to range from $12.55 to $12.91, representing a 5% to 8% increase over fiscal 2024 adjusted EPS.
Stock Price Movement
Post-earnings, Accenture’s stock experienced a 1.67% increase, reflecting positive market reaction to the company’s strong performance and future outlook.
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