Here is why Accenture's shares are trending

Accenture (NYSE: ACN) is up 3% after announcing Q2 2022 earnings that topped its earnings estimates and provided upbeat guidance for Q3 2022. CEO Julie Sweet said:

Accenture beats Q2 2022 estimates

The company reported earnings of $2.54 per share, beating estimates of $2.15 per share. The earnings were a 14% YoY from $2.23 per share a year ago, including investment gain. Operating income during the quarter was $2.06 billion, a YoY increase of 25% with an operating margin of 13.7% consistent with Q2 2021.

Revenue was $15.05 billion representing a YoY increase of 28% in local currency and 24% in US dollars over Q2 2021. Analysts had predicted revenue of $13.14 billion. The revenue was around $300 million above Accenture’s guidance range of $14.3 billion to $14.74 billion. Consulting revenues were up 29% to $8.32 billion while outsourcing revenue was up 19% in US dollars to $6.72 billion.

The company had new bookings of $19.6 billion with record outsourcing and consulting bookings of $8.7 billion and $10.9 billion, respectively. Julie added:

Q3 and FY2022 outlook

For the third quarter, the company anticipates revenue of $17.7 to $16.15 billion compared to the $13.94 billion that analysts expect. Also, for the Full-year, the company is looking for earnings per share of $10.61 to $10.81 compared to the Consensus of $9.68. Accenture also anticipates fiscal 2022 revenue growth of between 24% and 26% in local currency relative to previous guidance of between 19% and 22%. The company's business outlook continues to factor in the impact of foreign exchange on results in US dollars which will be -3% relative to fiscal 2021.