Summary
Accenture plc (ACN) reported strong financial results for the third quarter and first nine months of fiscal year 2011, which ended May 31, 2011. Net revenues saw a significant increase, up 21% in U.S. dollars for the quarter and 17% for the nine-month period, reflecting robust demand across most operating groups and geographic regions. Growth was particularly strong in the Resources and Financial Services sectors. The company's consulting business also experienced substantial growth, driven by client initiatives focused on cost savings, performance improvement, and business transformation. Profitability remained solid, with operating income increasing year-over-year. While gross margin saw a slight decrease, this was attributed to absorbing higher compensation and subcontractor costs, alongside increased recruiting and training expenses to meet growing demand. The company also noted a slight increase in its effective tax rate year-over-year for the nine-month period, though it expects the full fiscal year rate to be in the 27%-28% range. Accenture continues to manage its expenses effectively, with sales and marketing as a percentage of net revenue remaining stable and general and administrative costs decreasing as a percentage of net revenue for the nine-month period.
Financial Highlights
52 data points| Revenue | $7.20B |
| Cost of Revenue | $4.89B |
| Gross Profit | $2.31B |
| Operating Expenses | $6.25B |
| Operating Income | $949.42M |
| Interest Expense | $2.83M |
| Net Income | $628.01M |
| EPS (Basic) | $0.96 |
| EPS (Diluted) | $0.93 |
| Shares Outstanding (Basic) | 651.34M |
| Shares Outstanding (Diluted) | 746.20M |
Key Highlights
- 1Net revenues increased by 21% in USD and 15% in local currency for the third quarter of fiscal 2011 compared to the prior year.
- 2Nine-month net revenues grew 17% in USD and 16% in local currency, demonstrating sustained demand.
- 3Strong growth observed in the Resources (22% local currency Q3) and Financial Services (19% local currency Q3) operating groups.
- 4Consulting net revenues rose by 23% in USD and 17% in local currency for the quarter.
- 5Outsourcing net revenues grew 17% in USD and 12% in local currency for the quarter.
- 6Diluted Earnings Per Share (EPS) increased to $0.93 for the quarter, up from $0.73 in the prior year.
- 7Total headcount increased to approximately 223,000 as of May 31, 2011, reflecting increased demand for services.