01—Abstract
Summary
Summary of the 10-Q filed June 24, 2011. Cited figures are marked; the original filing is the authoritative source.
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%a 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%b-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.
02—Key points
Key Highlights
- Net revenues increased by 21% in USD and 15% in local currency for the third quarter of fiscal 2011 compared to the prior year.
- Nine-month net revenues grew 17% in USD and 16% in local currency, demonstrating sustained demand.
- Strong growth observed in the Resources (22% local currency Q3) and Financial Services (19% local currency Q3) operating groups.
- Consulting net revenues rose by 23% in USD and 17% in local currency for the quarter.
- Outsourcing net revenues grew 17% in USD and 12% in local currency for the quarter.
- Diluted Earnings Per Share (EPS) increased to $0.93 for the quarter, up from $0.73 in the prior year.
- Total headcount increased to approximately 223,000 as of May 31, 2011, reflecting increased demand for services.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2011, Accenture plc kept $0.09.
- Revenue$7.20B100.0%
- Cost of revenue−$4.89B67.9%
- Gross profit$2.31B32.1%
- Operating costs−$1.36B18.9%
- Operating income$949.4M13.2%
- Interest, other & tax−$321.4M4.5%
- Net income$628.0M8.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2011filed June 24, 2011Financial Statements
Q3 FY2011 against Q3 FY2010
| Line item | Q3 FY2011Q3 FY2010 | Change |
|---|---|---|
| Revenue | $7.20B$5.98B | +20.6% |
| Cost of Revenue | $4.89B$4.04B | +21.0% |
| Gross Profit | $2.31B$1.93B | +19.6% |
| Operating Expenses | $6.25B$5.17B | +20.9% |
| Operating Income | $949.42M$803.83M | +18.1% |
| Interest Expense | $2.83M$2.06M | +37.2% |
| Net Income | $628.01M$490.60M | +28.0% |
| EPS (Basic) | $0.96$0.76 | +26.3% |
| EPS (Diluted) | $0.93$0.73 | +27.4% |
| Shares Outstanding (Basic) | 651.34M641.36M | +1.6% |
| Shares Outstanding (Diluted) | 746.20M767.16M | −2.7% |
05—Questions
Frequently Asked Questions
How did Accenture's revenue perform in the third quarter of fiscal 2011 compared to the same period last year?
Accenture reported a significant increase in net revenues, up 21% in U.S. dollars and 15% in local currency for the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010. This strong performance was driven by robust demand across most operating groups and geographic regions.
What were the key drivers of growth for Accenture in this quarter?
Growth was primarily driven by strong demand in the Resources and Financial Services sectors. The consulting business also saw substantial growth, fueled by client initiatives in cost savings, performance improvement, and business transformation. The company also noted strong performance in the Americas and Asia Pacific regions.
How did profitability fare in the reported period?
Operating income increased year-over-year for both the third quarter and the nine-month period. While gross margin saw a slight decrease, this was primarily due to the company's efforts to absorb higher compensation and subcontractor costs, as well as increased investments in hiring and training to meet demand.
What is Accenture's outlook on future growth?
Based on new contract bookings, Accenture expects growth to continue in most areas of its business. However, the company anticipates that the rate of year-over-year growth may moderate and vary across segments and geographic regions, influenced by ongoing economic and geopolitical uncertainties.
06—Continue