Accenture tops Q3 earnings targets

The tech services firm reported third fiscal quarter revenue of $11 billion.

Accenture turned in a strong quarterly earnings report before the bell on Thursday. The tech services firm reported third fiscal quarter net income of $1.25 billion, with non-GAAP earnings of $1.90 cents a share on revenue of $11 billion.

Wall Street was expecting Accenture to report earnings of $1.85 a share on revenue of $10.87 billion.

Shares of Accenture were up by nearly 5% in pre-market trading. 

The company said consulting revenues for the quarter were down 4% to $6.0 billion. Outsourcing revenues came to $5 billion.

"We delivered third-quarter financial results that aligned with our expectations, including revenue growth in the top end of our guided range as well as strong profitability and free cash flow, while continuing to invest in our business and our people," said Accenture CEO Julie Sweet. 

For the outlook, Accenture is predicting a revenue of $10.6 billion to $11 billion at the end of the fourth fiscal quarter. Wall Street expects Accenture to report Q4 earnings of $1.73 a share on revenue of $10.88 billion.

Accenture also narrowed its annual outlook due to the ongoing coronavirus pandemic. The company now expects a net revenue growth range of 3.5% to 4.5%, compared with 3% to 6% previously. That alters the in-house EPS forecast for the entire fiscal year to a range of $7.57 to $7.70, compared with $7.48 to $7.70 previously.