(CTN News) – Despite missing estimates for its fourth quarter earnings, Accenture Plc has guided for weaker-than-expected revenue growth in the financial year ending August 2024 as a result of weaker-than-expected revenue growth last year.
The revenue of the world’s largest IT company by market capitalization grew by 4% year-on-year to $16 billion in the quarter ended Aug. 31, according to a statement issued on Thursday by the company.
This is compared to a consensus estimate of $16.07 billion made by analysts tracked by Bloomberg, which contrasts with the actual number.
Results for Accenture’s Q4: Key Highlights (YoY)
The revenue for the quarter increased by 4% to $16 billion (estimate: $16.07 billion).
At $1.91 billion, operating income decreased by 16% from $1.93 billion in the previous year.
There was a 270 basis point decline in operating margin to 12%, which is a significant decline.
A decrease of 18% in net profit to $1.37 billion was reported.
In terms of new bookings, the number of new bookings fell to $16.6 billion from $18.4 billion a year ago, with consulting and managed services making up an almost even split of the new bookings. As a whole, consulting revenue dropped by 2%, while managed services revenue dropped by 10% during the same period.
It is the end of the financial year. In the fiscal year ending August 2024, Accenture anticipates a revenue growth of 2–5% compared to an estimate of 4.6% or $67.15 billion for the current fiscal year.
It is clear that our ability to remain laser focused on meeting the needs of our clients is reflected in the $72 billion of new bookings we have received for fiscal 2023, the number of clients with quarterly bookings of more than $100 million, and our achievement of 300 Diamond clients, the company’s largest clientele,” said Chief Executive Officer Julie Sweet.
In the last six months, our clients have generated generative AI bookings of $300 million. Our clients’ generative AI bookings position us at the center of the beginning of AI-fueled reinvention.
This Dublin-based IT services and consultancy firm now expects its revenue to grow by 2 to 5% in the next 12 months, with earnings per share in the range of $11.41 to 11.76, an increase of 6 to 9%.
As a benchmark for India’s IT services firms, Accenture’s quarterly results serve as a kind of guide.
The outsourcing industry is facing a washout in the fiscal year ending March 2024 according to Morgan Stanley, but software services firms are expected to deliver a positive surprise in the fiscal year ending March 2025.