Accenture Shares Drop Premarket On Mixed Q3 Results

Accenture plc ACN reported third-quarter FY22 revenue growth of 22% year-on-year to $16.16 billion, beating the consensus of $15.35 billion. 

New bookings increased 10% Y/Y to $17 billion. Consulting revenues rose 24% Y/Y to $9.03 billion, and Outsourcing revenues increased 19% Y/Y to $7.13 billion.

Geographic Market Revenue: North American market revenue grew 23% Y/Y to $7.61 billion; European market increased 20% Y/Y to $5.35 billion; Growth Markets Revenue rose 22% Y/Y to $3.19 billion.

Industry Group Revenue: Communications, Media & Technology segment revenue rose 27% Y/Y to $3.43 billion; Financial Services unit revenue increased 19% to $3.08 billion; Health & Public Service division revenue expanded 16% to $2.92 billion; Products segment revenue rose 25% to $4.60 billion; while the Resources unit revenue increased 21% to $2.13 billion.

EPS of $2.79 beat the consensus of $2.74. The operating margin was consistent at 16.1%.

The company generated $3.06 billion in operating cash flow and held $6.70 billion in cash and equivalents.

Dividend: Accenture declared a quarterly dividend of $0.97 per share, representing a 10% increase over the quarterly dividend rate of $0.88 per share in FY21.

Guidance: Accenture sees Q4 FY22 revenue of $15 billion - $15.5 billion, above the consensus of $14.83 billion. Accenture raised the FY22 revenue outlook from $62.66 billion - $63.67 billion to $63.42 billion - $63.92 billion, above the consensus of $58.77 billion.

Accenture narrowed the FY22 EPS outlook from $10.61 - $10.81 to $10.61 - $10.70 above the consensus of $10.28.

Price Action: ACN shares traded lower by 3.63% at $276 in the premarket session on the last check Thursday.

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