Accenture (NYSE:ACN) Updates FY25 Earnings Guidance

Accenture (NYSE:ACN) updated its FY25 earnings guidance on Thursday. The company provided earnings per share guidance of $12.43-12.79 for the period, compared to the consensus EPS estimate of $12.74. The company issued revenue guidance of +4-7% yr/yr to $67.49-$69.44 billion, compared to the consensus revenue estimate of $68.62 billion. Accenture also updated its FY 2025 guidance to 12.430-12.790 EPS.

Accenture Trading Up 4.7 %

Shares of NYSE:ACN opened at $364.00 on Thursday. The stock has a market capitalization of $227.56 billion, a PE ratio of 31.85, a P/E/G ratio of 3.23 and a beta of 1.24. Accenture has a 1 year low of $278.69 and a 1 year high of $387.51. The firm has a fifty day moving average price of $360.14 and a 200 day moving average price of $336.31.

Accenture (NYSE:ACN) last announced its earnings results on Thursday, December 19th. The information technology services provider reported $3.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.43 by $0.16. Accenture had a return on equity of 26.83% and a net margin of 11.20%. The firm had revenue of $17.69 billion during the quarter, compared to analysts’ expectations of $17.15 billion. During the same quarter in the prior year, the business earned $3.27 earnings per share. The company’s revenue was up 9.0% on a year-over-year basis. On average, sell-side analysts forecast that Accenture will post 12.74 earnings per share for the current fiscal year.

Accenture Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 14th. Shareholders of record on Thursday, January 16th will be given a $1.48 dividend. This represents a $5.92 annualized dividend and a yield of 1.63%. Accenture’s dividend payout ratio is currently 51.79%.

Accenture announced that its Board of Directors has initiated a stock repurchase program on Thursday, September 26th that authorizes the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization authorizes the information technology services provider to buy up to 1.8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ACN. BMO Capital Markets upped their target price on shares of Accenture from $380.00 to $390.00 and gave the company a “market perform” rating in a research note on Friday, September 27th. Mizuho lifted their target price on Accenture from $352.00 to $365.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 18th. Bank of America raised their price objective on Accenture from $365.00 to $388.00 and gave the stock a “buy” rating in a research report on Friday, September 27th. JPMorgan Chase & Co. upped their target price on Accenture from $370.00 to $396.00 and gave the company an “overweight” rating in a research note on Monday. Finally, BNP Paribas downgraded shares of Accenture from an “outperform” rating to a “neutral” rating and set a $375.00 price target on the stock. in a research note on Wednesday, October 30th. Eight investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Based on data from MarketBeat, Accenture presently has a consensus rating of “Moderate Buy” and a consensus target price of $374.50.

Insider Activity at Accenture

In related news, CEO Ryoji Sekido sold 3,191 shares of the business’s stock in a transaction that occurred on Monday, November 4th. The shares were sold at an average price of $343.70, for a total value of $1,096,746.70. Following the completion of the transaction, the chief executive officer now owns 6 shares in the company, valued at $2,062.20. The trade was a 99.81 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Melissa A. Burgum sold 458 shares of the stock in a transaction on Thursday, October 17th. The shares were sold at an average price of $373.25, for a total value of $170,948.50. Following the completion of the transaction, the chief accounting officer now owns 9,777 shares in the company, valued at $3,649,265.25. The trade was a 4.47 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 36,298 shares of company stock valued at $13,372,661 over the last ninety days. 0.07% of the stock is owned by insiders.

Accenture Company Profile

Accenture plc, a professional services company, provides strategy and consulting, industry X, song, and technology and operation services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management; intelligent automation comprising robotic process automation, natural language processing, and virtual agents; and application management services, as well as software engineering services; strategy and consulting services; data and analytics strategy, data discovery and augmentation, data management and beyond, data democratization, and industrialized solutions comprising turnkey analytics and artificial intelligence (AI) solutions; metaverse; and sustainability services.