01—Abstract
Summary
Summary of the 10-Q filed December 20, 2011. Cited figures are marked; the original filing is the authoritative source.
Accenture plc reported robust performance for the first quarter of fiscal year 2012, ending November 30, 2011.
The company saw a significant 17% increase in net revenues year-over-year, reaching $7.07 billiona, with strong double-digit growth across all operating segments in local currency. This growth was fueled by both consulting (up 14%) and outsourcing (up 21%) services, indicating broad demand for Accenture's offerings. The company also reported an increase in operating income to $981 million, with an operating margin of 13.9%, showing improved profitability compared to the prior year period.
Financially, Accenture maintained a strong liquidity position with $5.1 billionb in cash and cash equivalents. The company actively managed its capital through share repurchases and dividend payments, demonstrating a commitment to shareholder returns. Despite global economic uncertainties, Accenture's diversified business model and focus on cost management contributed to a positive outlook, with expectations of continued growth, albeit at a moderating pace in the latter half of fiscal 2012.
02—Key points
Key Highlights
- Net revenues increased by 17% year-over-year to $7.07 billion in Q1 FY2012.
- Operating income grew by 19% to $981 million, with an improved operating margin of 13.9%.
- Both consulting and outsourcing services showed strong double-digit growth in local currency.
- The company maintained a healthy cash position, with $5.1 billion in cash and cash equivalents as of November 30, 2011.
- Accenture continued its capital return program with share repurchases and dividend payments.
- Headcount increased significantly year-over-year to over 244,000, reflecting strong demand for services.
- All five operating segments reported year-over-year revenue growth, indicating broad-based demand.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2012, Accenture plc kept $0.08.
- Revenue$7.59B100.0%
- Cost of revenue−$5.34B70.3%
- Gross profit$2.25B29.7%
- Operating costs−$1.27B16.7%
- Operating income$981.1M12.9%
- Interest, other & tax−$339.1M4.5%
- Net income$642.1M8.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2012filed December 20, 2011Financial Statements
Q1 FY2012 against Q1 FY2011
| Line item | Q1 FY2012Q1 FY2011 | Change |
|---|---|---|
| Revenue | $7.59B$6.48B | +17.1% |
| Cost of Revenue | $5.34B$4.53B | +17.7% |
| Gross Profit | $2.25B$1.94B | +15.8% |
| Operating Expenses | $6.61B$5.65B | +16.9% |
| Operating Income | $981.14M$826.93M | +18.6% |
| Interest Expense | $4.16M$4.74M | −12.2% |
| Net Income | $642.09M$534.71M | +20.1% |
| EPS (Basic) | $1.00$0.84 | +19.0% |
| EPS (Diluted) | $0.96$0.81 | +18.5% |
| Shares Outstanding (Basic) | 644.29M637.30M | +1.1% |
| Shares Outstanding (Diluted) | 730.92M743.71M | −1.7% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the first quarter of fiscal 2012?
Accenture reported a strong 17% increase in net revenues year-over-year, reaching $7.07 billion for the first quarter of fiscal 2012. This growth was driven by robust performance across all operating segments, with particularly strong double-digit increases in local currency for consulting (14%) and outsourcing (21%) services.
How did Accenture's profitability fare in this quarter?
The company demonstrated improved profitability, with operating income rising by 19% to $981 million. The operating margin also saw a slight increase, moving from 13.7% in the prior year period to 13.9% in the first quarter of fiscal 2012, reflecting effective cost management and revenue growth.
What is Accenture's current liquidity and cash position?
Accenture maintained a strong liquidity position, ending the quarter with $5.1 billion in cash and cash equivalents. This robust cash balance, coupled with operating cash flows, is expected to be sufficient to meet working capital and investment needs for the next twelve months.
How is Accenture returning capital to shareholders?
Accenture continued to prioritize shareholder returns through its share repurchase program and dividend payments. The company repurchased a significant number of shares during the quarter and paid dividends, demonstrating its commitment to enhancing shareholder value.
06—Continue