01—Abstract
Summary
Summary of the 10-Q filed June 25, 2010. Cited figures are marked; the original filing is the authoritative source.
Accenture plc's Form 10-Q filing for the quarter ended May 31, 2010, reveals a positive revenue trend with an 8%a increase in U.S. dollars (4% in local currency) for the third quarter of fiscal year 2010 compared to the prior year.
This marks a recovery from the economic downturn that impacted the company starting in fiscal year 2009. While nine-month revenues saw a slight decrease, the company is optimistic about continued recovery based on strong contract bookings. Profitability also showed improvement, with operating income up 10%b year-over-year in the third quarter.
Diluted earnings per share increased to $0.73c from $0.68 in the same period. The company's financial position remains strong, with significant cash and cash equivalents. Accenture continues to manage its resources effectively, maintaining a high utilization rate and actively hiring to meet growing demand.
02—Key points
Key Highlights
- Third-quarter fiscal 2010 net revenues increased by 8% in U.S. dollars ($5.57 billion) and 4% in local currency compared to the prior year's quarter.
- Operating income for the third quarter of fiscal 2010 rose by 10% to $804 million, with operating margin improving to 14.4% from 14.2%.
- Diluted earnings per share (EPS) for the third quarter increased to $0.73 from $0.68 in the prior year's quarter.
- The company experienced positive year-over-year revenue growth in local currency in three of its five operating groups (Products, Financial Services, and Resources) during the third quarter.
- Cash and cash equivalents stood at $4.3 billion as of May 31, 2010, indicating a healthy liquidity position.
- Consulting net revenues grew 9% in U.S. dollars in Q3 FY10, with outsourcing net revenues up 7%, signaling demand recovery in both segments.
- Accenture maintained a strong utilization rate of approximately 88% in the third quarter, reflecting increased demand and effective resource management.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2010, Accenture plc kept $0.08.
- Revenue$5.98B100.0%
- Cost of revenue−$4.04B67.7%
- Gross profit$1.93B32.3%
- Operating costs−$1.13B18.9%
- Operating income$803.8M13.5%
- Interest, other & tax−$313.2M5.2%
- Net income$490.6M8.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2010filed June 25, 2010Financial Statements
Q3 FY2010 against Q3 FY2009
| Line item | Q3 FY2010Q3 FY2009 | Change |
|---|---|---|
| Revenue | $5.98B$5.54B | +7.9% |
| Cost of Revenue | $4.04B$3.87B | +4.6% |
| Gross Profit | $1.93B$1.67B | +15.6% |
| Operating Expenses | $5.17B$4.81B | +7.6% |
| Operating Income | $803.83M$732.04M | +9.8% |
| Interest Expense | $2.06M$3.29M | −37.3% |
| Net Income | $490.60M$443.97M | +10.5% |
| EPS (Basic) | $0.76$0.71 | +7.0% |
| EPS (Diluted) | $0.73$0.68 | +7.4% |
| Shares Outstanding (Basic) | 641.36M623.65M | +2.8% |
| Shares Outstanding (Diluted) | 767.16M784.05M | −2.2% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the third quarter of fiscal year 2010?
Accenture reported a 8% increase in net revenues in U.S. dollars (reaching $5.57 billion) and a 4% increase in local currency for the third quarter of fiscal year 2010, compared to the same period in the previous year. This indicates a recovery in demand following the economic downturn.
How did Accenture's profitability change in the third quarter of fiscal year 2010?
Profitability improved, with operating income increasing by 10% to $804 million year-over-year. The operating margin also saw a slight improvement, rising to 14.4% from 14.2% in the prior year's quarter.
What is the outlook for Accenture's business based on this filing?
The company noted an improvement in overall market demand for its services and expects recoveries to continue based on new contract bookings. Three of its five operating groups experienced year-over-year revenue growth in local currency during the quarter, signaling a positive trend, though the company anticipates varied recovery across segments and regions.
What is Accenture's cash position and liquidity?
Accenture maintained a strong liquidity position with $4.3 billion in cash and cash equivalents as of May 31, 2010. The company believes its operating cash flows and available credit facilities are sufficient to meet its working capital and investment needs for the foreseeable future.
06—Continue