Summary
Accenture plc reported a strong financial performance for the second quarter and first half of fiscal year 2011, indicating a robust recovery from the previous year's economic downturn. Net revenues for the second quarter increased by 17% in U.S. dollars (18% in local currency) to $6.05 billion, and for the first half, revenues grew 15% in U.S. dollars (16% in local currency) to $12.10 billion. This growth was broad-based across all operating groups and geographies, with particular strength in the Financial Services and Resources sectors. The company saw significant improvements in its consulting business, with revenues up 20% year-over-year for the quarter, and a solid performance in outsourcing as well. Accenture also demonstrated effective cost management, with operating expenses growing at a slightly lower rate than revenues, leading to an expansion in operating margin to 12.7% for the quarter. Diluted earnings per share also saw a substantial increase, rising to $0.75 for the quarter and $1.56 for the first half, reflecting the company's operational efficiency and top-line growth.
Financial Highlights
53 data points| Revenue | $6.50B |
| Cost of Revenue | $4.58B |
| Gross Profit | $1.92B |
| Operating Expenses | $5.72B |
| Operating Income | $771.58M |
| Interest Expense | $3.51M |
| Net Income | $503.02M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 646.29M |
| Shares Outstanding (Diluted) | 743.78M |
Key Highlights
- 1Net revenues increased by 17% year-over-year in the second quarter of fiscal 2011 to $6.05 billion, driven by strong demand across all segments.
- 2Consulting net revenues saw a significant increase of 20% year-over-year in the second quarter, indicating a healthy rebound in client project spending.
- 3All five operating groups experienced revenue growth in local currency for both the quarter and the first half of fiscal 2011.
- 4Operating margin improved slightly to 12.7% in the second quarter of fiscal 2011 from 12.6% in the prior year period, driven by effective cost management.
- 5Diluted earnings per share increased to $0.75 for the second quarter and $1.56 for the first half of fiscal 2011, up from $0.60 and $1.27 respectively in the prior year.
- 6The company maintained a strong liquidity position with $4.7 billion in cash and cash equivalents as of February 28, 2011, and ample borrowing facilities.
- 7Headcount increased to approximately 215,000 as of February 28, 2011, reflecting growing demand for Accenture's services.