In 2024, Accenture plc. (NYSE: ACN) experienced significant success, highlighted by strong financial results. The firm adeptly maneuvered through a challenging market landscape by utilizing its flexible business model and ongoing innovation. As it approaches the announcement of its Q1 earnings, projections suggest that this upward trend has persisted into the initial months of the new fiscal year.
On Tuesday, Accenture’s stock opened at $357.06, surpassing its average price over the past year. After bouncing back from a one-year low in June, the stock has yielded approximately 24% returns. The positive demand landscape and the company’s ability to withstand macroeconomic challenges indicate a potential performance improvement as market conditions become favorable.
Anticipated Results
Accenture’s stock tends to experience notable fluctuations following earnings reports. Analysts anticipate adjusted earnings of $3.42 per share for the first quarter, reflecting a 4.6% increase compared to the previous year. This optimistic earnings forecast aligns with an expected 5.6% rise in Q1 revenues, projected at $17.13 billion. This estimate is consistent with management’s revenue guidance. The earnings report will be released on Thursday, December 19, at 6:40 am ET, with the prior quarter seeing both earnings and revenue exceed Wall Street’s projections.
Insights from Accenture’s Q4 earnings call:
“Our clients rely on our distinct mix of services across Strategy, Consulting, Song, Industry X, Technology, and Operations. Our consultants, combining deep industry knowledge with technology expertise, collaborate closely with clients to drive these transformations. Our investment in advanced platforms, assets, solutions, process proficiency, and insights garnered from our scale and diversity are our critical differentiators.”
By heavily investing in generative AI, Accenture demonstrates its commitment to innovation. These AI initiatives and the company’s early positioning in this field have set it up for robust growth in fiscal 2025. This focus is particularly important given the cautious technology spending observed among enterprises. The strong booking growth in FY24 highlights the effectiveness of Accenture’s strategy to be a transformative partner for clients engaging in substantial changes.
Q4 Performance
Over the past four years, the company has consistently surpassed quarterly earnings expectations, with just one exception. In the August quarter, earnings grew by 3% year-over-year to $2.79 per share on an adjusted basis. Including special items, net income attributable to Accenture rose significantly, reaching $1.68 billion or $2.66 per share. This improvement was supported by a 3% increase in Q4 revenues, totaling $16.4 billion.
On Tuesday afternoon, Accenture’s shares declined, reversing the slight upward trend observed earlier in the day.
