Accenture PLC on Thursday raised its full-year guidance, citing
a weaker-than-expected impact from the strong dollar, which also
buoyed its results for the May quarter.
For the year ending in August, the consulting firm now expects
net revenue growth in local currency of 9% to 10%, up from 8% to
10% previously. It predicts full-year adjusted earnings between
$4.73 and $4.78 a share, compared with a previous range of $4.66 to
$4.76. Analysts polled by Thomson Reuters had called for $4.74 a
share.
For the current quarter, Accenture forecast net revenue between
$7.45 billion and $7.70 billion, while analysts had forecast $7.58
billion. The guidance assumed a 10% negative impact from foreign
exchange.
Accenture's earnings have grown steadily in recent years, while
its outsourcing and consulting businesses have enjoyed strong
growth. Accenture was tapped last year to help fix the embattled
HealthCare.gov website, and in December said it won a five-year
$563 million contract to continue its work on the federal insurance
site.
The consulting unit's net revenue grew 1% to $4.11 billion.
Revenue from outsourcing was about flat at $3.66 billion.
Overall, Accenture reported third-quarter earnings of $793.7
million, down from $817.3 million in the prior-year period. On a
per-share basis, earnings fell to $1.24 from $1.26. But excluding a
pension settlement charge, earnings rose to $1.30 a share.
Analysts had projected earnings of $1.23 a share.
Net revenue, or revenues before reimbursements, grew 0.4% to
$7.77 billion from $7.74 billion a year earlier. Foreign exchange
took 10% off revenue, lower than the 11% impact the company had
expected.
Accenture had forecast net revenue to be between $7.35 billion
and $7.60 billion.
Shares of Accenture were up 0.2% in light premarket trade and
have increased about 9% this year through Wednesday's close.
Write to Angela Chen at angela.chen@dowjones.com
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