By Chelsey Dulaney
Accenture PLC shares hit an all-time high after the provider of
consulting services reported better-than-expected results in its
November quarter, boosted by strong growth in its outsourcing
business.
The stock, up 19% over the past year, hit a high in early
trading Thursday of $90.18 before retreating. Shares more recently
traded at $89.65, up 5.1% on the day.
Accenture's earnings have grown steadily in recent years, while
its outsourcing and consulting businesses have enjoyed strong
growth.
The company, however, did lower 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.
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%.
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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