Accenture Posts Upbeat Q4 Results, But Issues Weak Revenue Outlook

reported better-than-expected results for its fiscal fourth quarter. However, the company issued a weak revenue forecast for the current quarter. The Dublin, Ireland-based company reported quarterly earnings of $737.6 million, or $1.15 per share, compared to $701 million, or $1.08 per share, in the year-ago period. Its net revenue rose 1.4 percent to $7.89 billion. However, analysts were expecting earnings of $1.12 per share on revenue of $7.68 billion. The average estimate among 20 Estimize users was for earnings of $1.12 per share and revenue of $7.72 billion. Revenue in the company's outsourcing business gained 9 percent in local currency for the quarter, while revenue in consulting business surged 14 percent in local currency. Gross margin came in at 31.7 percent for the fourth quarter, versus 31.7 percent in the year-ago quarter. Operating income rose to $1.09 billion from $1.08 billion. New bookings totaled $8.8 billion in the quarter. At Aug. 31, 2015, Accenture's total cash balance was $4.4 billion, versus $4.9 billion at Aug. 31, 2014. The company lifted its semi-annual dividend by 8 percent and authorized $5 billion in additional share repurchase. Pierre Nanterme, Accenture's chairman and CEO, said, "We delivered excellent financial results for the fourth quarter and the full fiscal year 2015. I am particularly pleased with our double-digit revenue growth in local currency for both the quarter and the year, which was broad-based across our business. For the full fiscal year, we gained substantial market share, delivered strong new bookings, earnings per share and free cash flow, and returned $3.8 billion in cash to our shareholders." For FY16, Accenture projects earnings of $5.09 to $5.24 per share, versus analysts' estimates of $5.22 per share. The company expects revenue to rise 5 percent to 8 percent in local currency. For the current quarter, Accenture projects revenue of $7.70 billion to $7.95 billion, versus analysts' expectations of $8.11 billion. Accenture shares fell 2.99 percent to $94.93 in pre-market trading.