Accenture Posts Strong Fourth Quarter, But May Miss 2005 Estimates

Strong growth in sales to the financial-services and government markets led IT services firm Accenture to a robust fiscal fourth quarter and solid gains in earnings and revenue for the year, the company reported Wednesday. <P> However, Accenture said it might miss analysts' expectations for 2005 revenue and earnings. The news initially pushed the company's share price (NYSE: ACN) more than 10% lower in Wednesday afternoon trading. <P> For the three months ended Aug. 31, Accenture reported sales of $3.42 billion, an increase of 13% compared with the same period a year ago. Net income increased 51% to $183 million while per-share earnings rose 20% to 30 cents. For the year, Accenture saw revenues climb 16% to $13.67 billion. Net income jumped 39% to $690.8 million, while earnings per share rose 16% to $1.22. <P> Overall, Accenture's outsourcing business is outpacing its consulting unit in terms of growth. Outsourcing revenue grew 35% for the year to $5.08 billion, while consulting increased 7% to $8.59 billion. <P> During its fourth quarter, Accenture saw its biggest gains from clients in the financial-services industry and the government sector. Financial-services sales increased 25% to $725 million, while government sales rose 13% to $501 million. <P> Looking ahead, Accenture said it expects net revenue for 2005 will increase between 9% and 12%, with per-share earnings coming in at between $1.34 and $1.39. Analysts surveyed by Thomson First Call were expecting, on average, a 12% net-revenue increase and $1.39 earnings per share.

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