Accenture Raises Outlook
June 23 2016 - 8:56AM
Dow Jones News
By Austen Hufford
Accenture PLC posted revenue and profit increases and raised its
outlook as the consultancy pushes into new segments.
The Dublin-based company has been shifting its business to
digital, cloud and security services through a number of
acquisitions. Thursday, the consultancy said those segments
accounted for 40% of revenue.
For the year, Accenture now expects to earn an adjusted $5.29 to
$5.33 a share, up from its previous forecast of $5.21 to $5.32. The
company also expects revenue to increase at a currency-adjusted
rate of 9.5% to 10.5%, up from 8% to 10% previously. Both outlooks
were already boosted last quarter.
In the quarter, Accenture saw sales rise across most of its
business segments, helped by 15% growth in its products unit, its
largest, and 11% growth in its health and public services unit. The
company has worked to improve the HealthCare.gov website used by
Americans to sign up for health insurance under the Affordable Care
Act.
Over all for its fiscal third quarter ended May 31, Accenture
reported a profit of $897.2 million, or $1.41 a share, up from
$793.7 million, or $1.24 cents a share, a year prior.
Revenue rose 8.4% to $8.97 billion.
Analysts polled by Thomson Reuters were expecting $1.41 a share
on $8.34 billion in revenue.
The increase in profit was driven by higher revenue and a lower
share count, which was partially offset by a higher tax rate and an
increase in nonoperating expenses.
Shares rose 0.7% to $119.80 in premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
June 23, 2016 08:41 ET (12:41 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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