10-QPeriod: Q3 FY2010

Accenture plc Quarterly Report for Q3 Ended May 31, 2010

Filed June 25, 2010For Securities:ACN

Summary

Accenture plc's Form 10-Q filing for the quarter ended May 31, 2010, reveals a positive revenue trend with an 8% 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% year-over-year in the third quarter. Diluted earnings per share increased to $0.73 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.

Financial Highlights

53 data points
Beta

Revenue

$5.98B

32.3% Gross Margin

Net Income

$490.60M

8.2% Net Margin

EPS (Diluted)

$0.73

Total Assets

$11.92B

Cash & Equivalents

$4.31B

Free Cash Flow

$903.17M

Financial Statements
Beta
Revenue$5.98B
Cost of Revenue$4.04B
Gross Profit$1.93B
Operating Expenses$5.17B
Operating Income$803.83M
Interest Expense$2.06M
Net Income$490.60M
EPS (Basic)$0.76
EPS (Diluted)$0.73
Shares Outstanding (Basic)641.36M
Shares Outstanding (Diluted)767.16M

Key Highlights

  • 1Third-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.
  • 2Operating income for the third quarter of fiscal 2010 rose by 10% to $804 million, with operating margin improving to 14.4% from 14.2%.
  • 3Diluted earnings per share (EPS) for the third quarter increased to $0.73 from $0.68 in the prior year's quarter.
  • 4The 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.
  • 5Cash and cash equivalents stood at $4.3 billion as of May 31, 2010, indicating a healthy liquidity position.
  • 6Consulting net revenues grew 9% in U.S. dollars in Q3 FY10, with outsourcing net revenues up 7%, signaling demand recovery in both segments.
  • 7Accenture maintained a strong utilization rate of approximately 88% in the third quarter, reflecting increased demand and effective resource management.

Frequently Asked Questions

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.

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.

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.

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.