Accenture (ACN) Tops Q1 EPS by 12c, Offers Outlook
Accenture (NYSE: ACN) reported Q1 EPS of $1.79, $0.12 better than the analyst estimate of $1.67. Revenue for the quarter came in at $9.5 billion versus the consensus estimate of $9.26 billion.
GUIDANCE:
Accenture sees Q2 2018 revenue of $9.15-9.4 billion, versus the consensus of $9.15 billion.
- Fiscal Year 2018
- Accenture’s business outlook for the full 2018 fiscal year now assumes that the foreign-exchange impact on its results in U.S. dollars will be positive 2.5 percent compared with fiscal 2017; the previous foreign-exchange assumption was positive 3 percent.
- For fiscal 2018, the company now expects net revenue growth to be in the range of 6 percent to 8 percent in local currency, compared with 5 percent to 8 percent previously.
- The company now expects GAAP diluted EPS to be in the range of $6.48 to $6.66, compared with $6.36 to $6.60 previously. The updated EPS range represents 19 percent to 22 percent growth over GAAP EPS of $5.44 for fiscal 2017, and 10 percent to 13 percent growth over adjusted EPS of $5.91.
- Accenture continues to expect operating margin for the full fiscal year to be in the range of 14.9 percent to 15.1 percent, an expansion of 10 to 30 basis points from adjusted operating margin for fiscal 2017.
- For fiscal 2018, the company continues to expect operating cash flow to be in the range of $5.0 billion to $5.3 billion; property and equipment additions to be $600 million; and free cash flow to be in the range of $4.4 billion to $4.7 billion.
- The company now expects its annual effective tax rate to be in the range of 22 percent to 24 percent, compared with 23 percent to 25 percent previously. The company’s outlook for its tax rate does not include the potential impact from U.S. tax reform.
For earnings history and earnings-related data on Accenture (ACN) click here.