Accenture (ACN) jumps 10% on Q1 earnings beat
13:45, 16 December 2021
Accenture stock (ACN) jumped in pre-market trading as the consulting and professional services company’s fiscal first-quarter earnings beat estimates on soaring quarterly revenues.
For the three months ended 30 November, net income was $1.82bn (£1.3bn), up from $1.52bn reported a year earlier. Revenue rose 27% to $14.97bn from $11.76bn a year ago.
Diluted earnings per share of $2.78 beat analyst estimates of $2.64 on revenue of $14.22bn, according to figures widely available on financial news sites.
Stock up 10%
In pre-market trading the stock was up 10% at $414.00.
“Our outstanding first-quarter financial performance and ability to capitalise on the market opportunity reflects continued market share gains,” Accenture chair and CEO Julie Sweet said in a press release. “This is the direct result of having executed for years a strategy to rotate our business to digital, cloud and security, both hiring and upskilling exceptionally talented people across the globe and fostering deep relationships with both the world’s leading companies and our technology partners”.
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New bookings jump 30%
The company said new bookings climbed to $16.8bn, representing a 30% increase from last year’s first quarter, with consulting bookings at $9.4bn and outsourcing bookings coming in at $7.4bn in the period.
Accenture said new bookings for the first quarter were a record $16.8bn.
Looking ahead, Accenture said it expects second-quarter revenue of $14.3bn to $14.75bn.
Accenture started out as the technical consulting arm of former accounting giant Arthur Andersen, which lost status in the early 2000’s following the collapse of energy trader Enron.