Accenture Stock Gains On Q1 Beat, Raised FY22 Outlook

Accenture PLC ACN reported first-quarter FY22 revenue growth of 27% year-on-year to $14.97 billion, beating the consensus of $12.6 billion. 

• New bookings increased 30% Y/Y to $16.8 billion. Consulting revenues rose 33% Y/Y to $8.4 billion, and Outsourcing revenues increased 21% Y/Y to $6.6 billion.
• Geographic Market Revenue: North American market revenue grew 26% Y/Y to $6.9 billion; European market increased 29% Y/Y to $5.1 billion; Growth Markets Revenue rose 28% Y/Y to $2.96 billion.
• Industry Group Revenue: Communications, Media & Technology segment revenue rose 32% Y/Y to $3.1 billion; Financial Services unit revenue increased 24% Y/Y to $2.9 billion; Health & Public Service division revenue expanded 23% Y/Y to $2.7 billion; Products segment revenue rose 34% Y/Y to $4.3 billion; while the Resources unit revenue increased 17% Y/Y to $1.95 billion.
• Margin: The operating margin expanded 20 basis points to 16.3%.
• EPS of $2.78 beat the consensus of $2.36.
• The company generated $531 million in operating cash flow and held $5.6 billion in cash and equivalents.
• Dividend: Accenture's quarterly dividend of $0.97 per share is payable on February 15, 2022, for shareholders of record on January 13, 2022.
• Guidance: Accenture sees Q2 FY22 revenue of $14.30 billion - $14.75 billion, above the consensus of $12.48 billion.
• Accenture raised the FY22 revenue growth outlook from 12% - 15% to 19% - 22%. Accenture raised FY22 GAAP EPS outlook from $9.90 - $10.18 to $10.32 - $10.60, above the consensus of $9.01.
• Price Action: ACN shares traded higher by 8.45% at $407.00 in the premarket session on the last check Thursday.