Summary
Accenture plc's first quarter fiscal year 2010 filing (period ending November 30, 2009) reflects a challenging economic environment impacting revenues. Net revenues decreased by 11% in U.S. dollars and 12% in local currency compared to the prior year quarter, primarily driven by reduced client demand in consulting and outsourcing services. The company experienced a 15% decline in consulting net revenues and a 4% decrease in outsourcing net revenues. Despite the revenue headwinds, Accenture demonstrated resilience through effective cost management and improved operational efficiency. Operating income saw a slight decrease of 8%, but operating margin improved to 13.9% from 13.5% year-over-year, driven by a better gross margin. The company maintained a strong cash position, with cash and cash equivalents at $4.0 billion, though down from $4.5 billion at the previous fiscal year-end. Shareholder returns were supported by a $0.75 per share dividend payment, and the company continued its share repurchase program with significant authorization remaining.
Financial Highlights
54 data points| Revenue | $5.75B |
| Cost of Revenue | $3.96B |
| Gross Profit | $1.78B |
| Operating Expenses | $5.00B |
| Operating Income | $746.41M |
| Interest Expense | $4.48M |
| Net Income | $444.82M |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 631.53M |
| Shares Outstanding (Diluted) | 774.56M |
Key Highlights
- 1Net revenues declined 11% year-over-year to $5.38 billion, impacted by a weak economic environment affecting client spending on consulting and outsourcing.
- 2Consulting net revenues decreased by 15% and outsourcing net revenues decreased by 4% compared to the prior year quarter.
- 3Operating margin improved to 13.9% from 13.5% year-over-year, demonstrating effective cost management despite revenue pressures.
- 4Diluted Earnings Per Share (EPS) decreased to $0.67 from $0.74 in the prior year quarter, impacted by lower revenues and a higher effective tax rate.
- 5The company maintained a solid liquidity position with $4.0 billion in cash and cash equivalents.
- 6Accenture declared a cash dividend of $0.75 per share and continued its share repurchase program, underscoring its commitment to returning capital to shareholders.