NEW YORK - Shares of global professional services company Accenture (NYSE: NYSE:ACN) jumped 5% as the firm reported robust new bookings in its third quarter fiscal 2024 results, despite a slight miss in earnings per share (EPS) expectations.
The company's EPS came in at $3.13, which was $0.04 below the analyst estimate of $3.17. However, revenue was in line with forecasts, with the quarter generating $16.5 billion, just shy of the consensus estimate of $16.6 billion.
Accenture's new bookings were a highlight, totaling $21.1 billion, marking a 22% increase in U.S. dollars and 26% in local currency compared to the same quarter last year. This significant growth in bookings indicates strong demand for the company's services, even as revenue slightly dipped by 1% in U.S. dollars but increased by 1.4% in local currency compared to the third quarter of fiscal 2023.
Julie Sweet, Accenture's chair and CEO, attributed the company's performance to a strategic focus on client needs and significant milestones in Generative AI, with sales reaching $2 billion fiscal year-to-date. Sweet also emphasized the company's continued investment in acquisitions, with 35 deals amounting to $5.2 billion of capital deployed year-to-date.
For the full fiscal year 2024, Accenture has updated its guidance, now expecting EPS to range between $11.85 and $12.00, which is below the analyst consensus of $12.08. Despite this, the company's strong bookings and strategic investments suggest confidence in its growth trajectory.
The stock's positive movement indicates investor optimism, likely bolstered by the company's ability to maintain a strong pipeline of new business and its proactive approach to integrating emerging technologies such as Generative AI into its service offerings.
In addition to financial metrics, Accenture reported a GAAP operating margin of 16.0%, an increase of 180 basis points over the third quarter of fiscal 2023, and an adjusted operating margin of 16.4%, a slight expansion of 10 basis points. The company also declared a quarterly cash dividend of $1.29 per share, representing a 15% increase from the previous fiscal year.
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