Accenture Posts Strong Fourth Quarter, But May Miss 2005 EstimatesAccenture 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.

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.

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.

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.

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.

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.