Accenture Boosts FY22 Outlook; Raises Dividend 10% - Update

While reporting financial results for the second quarter on Thursday, professional services company Accenture Plc (ACN) raised its earnings and revenue growth outlook for the full-year 2022 and also provided revenue outlook for the third quarter.

For fiscal 2021, the company now expects earnings in a range of $10.61 to $10.81 per share on revenue growth of 24 to 26 percent in local currency.

Previously, the company projected earnings in a range of $10.32 to $10.60 per share on revenue growth of 19 to 22 percent in local currency.

The company continues to assume that the foreign-exchange impact on its results in U.S. dollars for 2021 will be negative 3% compared with fiscal 2021.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $9.68 per share on revenue growth of 22.7 percent to $55.0 billion for the year. Analysts' estimates typically exclude special items.

For the third quarter, the company projects revenues in the range of $15.70 billion to $16.15 billion, 22% to 26% growth in local currency, reflecting the company's assumption of a negative 4% foreign-exchange impact over last year. The street is looking for revenues of $13.94 billion for the quarter.

The company said it now expects to return at least $6.5 billion in cash to shareholders through dividends and share repurchases, compared with at least $6.3 billion previously.

On Tuesday, Accenture's Board of Directors has declared a 10% higher quarterly cash dividend of $0.97 per share, payable on May 13, 2022 to shareholders of record at the close of business on April 14, 2022.

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