Accenture Stock Crashes Following the Release of FQ4 Earnings.

Accenture Stock NYSE:ACN

Accenture Stock (NYSE:ACN)

After reporting fiscal fourth-quarter results on September 22 that showed revenue in line with projections but an outlook for the fiscal first quarter that was perceived as below expectations, Accenture stock is mainly trading flat on the day.

The Irish software giant anticipates first-quarter 2023 revenues of between $15.2 billion and $15.75 billion (Consensus $16.16 billion), an increase of 10% to 14% in local currency, based on Accenture’s forecast of roughly -8.5% foreign-exchange effect compared with FQ1 2022. Revenue growth for the whole fiscal year 2023 is projected to be between 8% and 11% in local currency, according to Accenture (NYSE:ACN).

At $15.42B, fourth-quarter sales growth of almost 15% (in US dollars) (+22.4% in local currency) was in line with analysts’ forecasts, while GAAP EPS of $2.60 was above forecasts by $0.03.

A report by Jefferies stated that while the results were intense, there should be growing worries about demand stability. According to Bloomberg, the company has a Hold rating and a price target of $310 on Accenture stock, adding that the outlook “is likely to disappoint” due to currency headwinds being a more significant concern than expected.

According to Cowen, who has an Outperform rating and a $325 price target on Accenture stock, the FQ4 results were robust, but the Accenture (NYSE:ACN) outlook was mixed.

Vital Knowledge, according to Bloomberg, commented that ACN’s performance and forecast were “quite great” and that the only primary source of pressure appeared to be foreign exchange. Vital warned that the income forecast was “squishy in several sectors.”

Accenture (NYSE:ACN) projects an earnings per share (EPS) range of $11.09 to $11.41 for fiscal 2023, representing a growth rate of 4% to 7% compared to EPS in FY22. Estimates put operating cash flow between $8.5 and $9 billion.

At least $7.1B will be returned to Accenture stock shareholders in the form of dividends and share repurchases in fiscal 2023.

Other figures for FQ4 include an increase of 14% in Consulting sales to $8.33B and 16% in Outsourcing revenues to $7.09B.

Accenture’s (NYSE:ACN) largest market was North America, contributing $7.52B in sales (up 18% year-over-year).

There was a 22% rise in new bookings to $18.4B in FQ4.

The dividend was increased by 15.5% to $1.12, and the board authorized purchasing an additional $3 billion in shares.

Accenture Has Acquired Inspirage.

Inspirage, a firm owned by RLH Equity Partners, has agreed to be acquired by Accenture (NYSE:ACN).

The value of the transaction was not revealed.

Implementation services for Oracle’s (NYSE:ORCL) cloud-based supply chain management software and related enterprise resource planning ecosystem components are available from Inspirage. It blends advising with intellectual property to aid customers in managing the scope of their supply chains, from concept to delivery.

Featured Image-  Megapixl @ Hisdx15

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