Accenture shares surge over 5% in pre-market session after impressive Q4 results

Accenture saw its shares rise over 5% in pre-market trading following the release of its strong fourth-quarter and full-year fiscal 2024 results. The company reported new bookings of $20.1 billion for the quarter, bringing the full-year bookings to a record $81.2 billion—an increase of 13% in U.S. dollars and 14% in local currency.

Generative AI new bookings were notable, reaching $1 billion in Q4 and $3 billion for the full year. The company’s revenues for the fourth quarter stood at $16.4 billion, reflecting a 3% increase in U.S. dollars and 5% in local currency. For the full fiscal year, revenues were $64.9 billion, marking an increase of 1% in U.S. dollars and 2% in local currency. Accenture’s GAAP operating margin also improved to 14.3% for the quarter and 14.8% for the full year.

Earnings per share (EPS) saw growth as well, with fourth-quarter GAAP EPS at $2.66 (a 24% increase) and adjusted EPS at $2.79 (up 3%). For the full year, GAAP EPS reached $11.44 (up 6%) and adjusted EPS hit $11.95 (up 2%). The company generated a free cash flow of $3.2 billion for the quarter and $8.6 billion for the year. Additionally, Accenture increased its quarterly dividend by 15% to $1.48 per share and approved an additional $4 billion for share repurchases.

Looking ahead, Accenture forecasts revenue growth of 3% to 6% for fiscal year 2025 and expects GAAP EPS between $12.55 and $12.91, representing a 5% to 8% increase from the adjusted EPS for fiscal 2024.

Revenues by segment in Q4 show consulting revenues at $8.26 billion (up 1% in U.S. dollars and 3% in local currency) and managed services revenues at $8.15 billion (up 5% in U.S. dollars and 7% in local currency).

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.