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May 31, 2024
Accenture Q3 2024 Earnings Report
Accenture's financial performance declined slightly due to foreign exchange impacts, but new bookings increased significantly.
Key Takeaways
Accenture reported a slight decrease in revenue and EPS due to foreign exchange impacts, but new bookings grew by 22%. The company is focused on generative AI and continues to invest in acquisitions.
New bookings increased by 22% to $21.1 billion.
Generative AI new bookings reached over $900 million for the quarter.
Revenues decreased by 1% to $16.5 billion.
GAAP EPS decreased by 3% to $3.04.
Revenue by Geographic Location
Forward Guidance
Accenture expects Q4 2024 revenues to be in the range of $16.05 billion to $16.65 billion, representing 2% to 6% growth in local currency. For fiscal year 2024, the company now expects revenue growth to be in the range of 1.5% to 2.5% in local currency and GAAP EPS to be in the range of $11.29 to $11.44.
Positive Outlook
- Revenue growth of 2% to 6% in local currency is expected for Q4 2024.
- Full-year revenue growth is projected to be 1.5% to 2.5% in local currency.
- GAAP operating margin for fiscal 2024 is expected to be 14.8%.
- Free cash flow is projected to be in the range of $8.7 billion to $9.3 billion.
- Accenture plans to return at least $7.7 billion in cash to shareholders through dividends and share repurchases.
Challenges Ahead
- Foreign-exchange impact on results in U.S. dollars is expected to be negative 0.7% for fiscal 2024.
- GAAP diluted EPS is now expected to be in the range of $11.29 to $11.44, compared to $11.41 to $11.64 previously.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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