Accenture's Fourth-Quarter Profit Meets Estimates; Revenue Fell

Accenture

But Accenture met analysts' earnings expectations, thanks to cost cutting.

The company, formerly known as Andersen Consulting, said it earned $38.1 million, or 8 cents a share, in the three months ended Aug. 31, compared with $42.7 million, or 10 cents a share, a year earlier. The latest quarter included a real-estate consolidation charge of $111 million plus investment losses.

Excluding these items, Accenture said it earned 16 cents a share, matching the consensus estimate of analysts surveyed by Thomson First Call, and up from 15 cents a share excluding items a year earlier.

Shares of Accenture were at $12 early Thursday, down 3.7 percent, or 46 cents, on the New York Stock Exchange.

Though Accenture executives are optimistic about earnings for fiscal 2003, which began Sept. 1, they see no immediate change in demand.

Chief Executive Joe Forehand told analysts and investors in a conference call Thursday that he saw "no new technology wave on the near-term horizon that will stimulate technology spending."

Chief Financial Officer Harry You said Accenture expects to earn 23 to 26 cents a share in the fiscal first quarter, on revenues of about $2.89 billion.

Although Accenture is cutting costs, You said the company expects to increase its work force by about 2,000 to 8,000 employees during fiscal 2003. Accenture now has about 76,900 employees.

Accenture, which also offers tax and audit services, has 110 offices in 47 countries. The Bermuda-based company broke away from parent Andersen Worldwide in 2000 and changed its name.

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