By Chelsey Dulaney
Accenture said strong growth in its outsourcing business helped
drive better-than-expected results in its November quarter, but the
firm lowered its earnings guidance for the year on higher foreign
exchange headwinds.
Accenture said it now expects to post earnings of $4.66 to
$4.80, down from its previous guidance of $4.74 and $4.88 a share
in earnings. The company bumped up its revenue outlook, however,
saying it now expects revenue growth of 5% to 8%, up from its
previous range of 4% to 7%.
Accenture provides consulting services to large, multinational
technology firms such as International Business Machines Corp. Its
earnings have grown steadily in recent years, while its outsourcing
and consulting businesses have enjoyed strong growth.
For the period ended Nov. 30, the consulting unit's net revenue
grew 4% to $4.09 billion. Revenue from outsourcing grew 11% to $3.8
billion.
Overall, Accenture reported earnings of $831.5 million, up from
$751.8 million in the prior-year period. On a per-share basis,
which includes income attributable to noncontrolling interests,
earnings rose to $1.29 from $1.15.
Analysts had projected earnings of $1.20 a share in the latest
period.
Net revenues grew 7.3% to $7.89 billion, topping its expectation
for $7.55 billion to $7.8 billion.
Looking ahead, the company expects net revenue between $7.25
billion and $7.50 billion in the current period. Analysts had
expected revenue of $7.46 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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