Accenture Q4 Revenue Tops Estimates On Strong Cloud Services Demand

Accenture Plc, a provider of consulting and outsourcing services, reported a better-than-expected 7.6 per cent rise in quarterly revenue as its investments to boost digital and cloud services pay off.

Shares of the company, which also reported a better-than-expected adjusted profit, rose 2 per cent in premarket trading.

Accenture is beefing up its digital and cloud services as it seeks to gain market share from rivals including IBM Corp and India’s Infosys Ltd and Tata Consultancy Services Ltd. 

“Looking ahead, we will continue to invest in high-growth areas … with a particular focus on digital, cloud and security services,” chief executive Pierre Nanterme said in a statement.

Accenture said it expected first-quarter revenue between $8.40 billion and $8.65 billion. Analysts on an average expected $8.59 billion, according to Thomson Reuters.

Revenue from the company’s consulting business, which accounts for more than half its total revenue and is the company’s most profitable, rose 10.8 per cent to $4.61 billion.

Outsourcing revenue rose 4.1 per cent to $3.88 billion.

Net income rose to $1.13 billion or $1.68 per share in the fourth quarter ended Aug. 31, from $788.13 million or $1.15 per share, a year earlier. Excluding items, the company earned $1.31 per share.

Revenue rose to $8.49 billion from $7.89 billion.

Analysts had expected revenue of $8.43 billion and adjusted profit of $1.30 per share.