Accenture Clocks 24% Revenue Growth In Q4, Hikes Dividend, Adds $3B Share Buyback

  • Accenture PLC ACN reported fourth-quarter FY21 revenue growth of 24% year-on-year to $13.419 billion, marginally missing the analyst consensus of $13.42 billion. 
  • New bookings increased 7% Y/Y to $15 billion. Consulting revenues rose 29% Y/Y to $7.31 billion, and Outsourcing revenues increased 19% Y/Y to $6.11 billion.
  • Geographic Market Revenue: North American market revenue grew 23% Y/Y to $6.39 billion; European market increased 26% Y/Y to $4.30 billion; Growth Markets Revenue rose 23% Y/Y to $2.73 billion.
  • Industry Group Revenue: Communications, Media & Technology segment revenue rose 26% Y/Y to $2.77 billion; Financial Services unit revenue increased 24% Y/Y to $2.61 billion; Health & Public Service division revenue expanded 20% Y/Y to $2.50 billion; Products segment revenue rose 29% Y/Y to $3.73 billion; while the Resources unit revenue increased 17% Y/Y to $1.80 billion.
  • Margins: The gross margin expanded 150 basis points to 33.3%. The operating margin expanded 30 basis points to 14.6%.
  • Net income grew 9.9% Y/Y to $1.44 billion. EPS of $2.20 beat the analyst consensus of $2.19.
  • The company generated $2.4 billion in operating cash flow and held $8.2 billion in cash and equivalents.
  • Share buyback: Accenture repurchased shares worth $915 million in Q4. The board approved $3.0 billion of additional share repurchase.
  • Dividend: Accenture raised the quarterly dividend by 10% to $0.97 per share for shareholders of record on Oct. 14, payable on Nov. 15, 2021.
  • Guidance: Accenture sees Q1 FY22 revenue of $13.9 billion - $14.35 billion, above the analyst consensus of $13.51 billion.
  • For FY22, the company expects revenue growth of 12% - 15% in local currency. The company expects FY22 GAAP EPS of $9.90 - $10.18, above the consensus of $9.87.
  • Price Action: ACN shares traded higher by 1.90% at $341.03 in the premarket session on the last check Thursday.
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