Accenture Q1 Earnings & Revenues Beat Estimates, Increase Y/Y

Accenture plc ACN has reported better-than-expected first-quarter fiscal 2025 results.See Zacks Earnings Calendar to stay ahead of market-making news.ACN’s earnings (excluding 13 cents from non-recurring items) of $3.6 per share outpaced the Zacks Consensus Estimate by 6.2% and increased 28.7% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 3.1% and gained 9.1% on a year-over-year basis.The company’s shares have gained 14.5% in the past six months, underperforming the industry’s 22.3% rise. However, it has outperformed 11.6% growth of the Zacks S&P 500.Accenture PLC Price, Consensus and EPS Surprise  Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC QuoteACN’s Revenues in DetailBased on the type of work, managed services’ revenues of $8.6 billion increased 11% from the year-ago quarter on a reported basis and in local currency, surpassing our estimate of $8.2 billion. Consulting revenues gained 7% year over year on a reported basis and 6% in local currency to $9 billion, beating our projection of $8.9 billion.Segment-wise, health and public service revenues of $3.8 billion grew 13% from the year-ago quarter on a reported basis and 12% in local currency. The figure beat our expectation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 6% on both reported and local currency basis. The figure met our estimate. Revenues from the product segment amounted to $5.4 billion, increasing 12% year over year on a reported basis and 10% on a local currency basis. The figure outpaced our estimation of $5.2 billion.Communications, media and technology revenues of $2.9 billion increased 7% year over year on a reported basis and in terms of local currency, meeting our estimate. Financial services revenues of $3.2 billion grew 4% from the year-ago quarter on a reported basis and in local currency. The figure surpassed our estimate of $3.1 billion.Geographically, revenues of $8.7 billion from the Americas rose 9% from the year-ago quarter on a reported basis and 11% on a local currency basis. The figure beat our projection of $8.6 billion. Revenues of $6.4 billion from the EMEA gained 10% on a reported basis and 6% in local currency, beating our estimation of $6 billion. Revenues of $2.5 billion from the Asia Pacific increased 6% year over year on a reported basis and 4% in local currency, meeting our projection.Booking Trends of AccentureThe company reported bookings worth $18.7 billion in first-quarter fiscal 2025, rising 1% from the year-ago quarter on a reported basis and in local currency. Consulting bookings were $9.2 billion and managed services bookings were $9.5 billion.ACN’s Operating ResultsThe gross margin (gross profit as a percentage of net revenues) for the first quarter of fiscal 2025 was 32.9%, down 70 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.7 billion, rising 9% on a year-over-year basis. The adjusted operating margin of 16.7% is flat with first-quarter fiscal 2024.Balance Sheet & Cash Flow of AccentureACN exited first-quarter fiscal 2025 with cash and cash equivalents of $8.3 billion compared with $5 billion at the end of fourth-quarter fiscal 2024. The company generated $1 billion in cash from operating activities. Capital expenditure in the reported quarter was $152.2 million.The free cash flow was $870 billion. Accenture repurchased 2.5 million shares for $898 million, including 2.2 million shares repurchased in the open market. The company paid out a dividend of $926 million in the first quarter of fiscal 2025.ACN’s FY25 GuidanceFor fiscal 2025, Accenture raised its revenue growth guidance to 4-7% in local currency compared with the view of 3-6% given in the preceding quarter. The company expects an operating cash flow of $9.4-$10.1 billion. The free cash flow is anticipated between $8.8 billion and $9.5 billion.Accenture carries a Zacks Rank #4 (Sell) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Snapshot of ACN's PeersClean Harbors, Inc. CLH reported mixed third-quarter 2024 results.CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.Verisk Analytics Inc. VRSK posted impressive third-quarter 2024 results.VRSK’s adjusted earnings (excluding 13 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 4.4% and growing 9.9% from the year-ago quarter. Total revenues of $725.3 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report Clean Harbors, Inc. (CLH): Free Stock Analysis Report Verisk Analytics, Inc. 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