01—Abstract
Summary
Summary of the 10-Q filed March 23, 2012. Cited figures are marked; the original filing is the authoritative source.
Accenture plc reported strong financial results for the second quarter and first half of fiscal year 2012, demonstrating robust growth across its business segments.
Net revenues saw a significant increase, driven by solid performance in both consulting and outsourcing services, with particularly strong growth observed in the "Products" and "Communications, Media & Technology" operating groups. The company's strategic focus on cost management contributed to an improvement in operating margins, showcasing effective operational execution. Key financial highlights include a notable rise in diluted earnings per share, reflecting enhanced profitability.
Accenture's robust cash flow generation from operations provides a solid liquidity position, supporting its ongoing capital allocation strategy, including share repurchases and dividend payments. Despite a challenging global economic environment, Accenture has maintained its positive growth trajectory, signaling resilience and effective strategic positioning in the market.
02—Key points
Key Highlights
- Net revenues for the second quarter of fiscal 2012 increased by 12% year-over-year to $6.80 billion, with 13% growth in local currency.
- Diluted earnings per share (EPS) rose to $0.97 for the second quarter of fiscal 2012, up from $0.75 in the prior year period.
- Operating income increased by 15% to $889 million for the second quarter of fiscal 2012, with operating margin improving to 13.1% from 12.7% in the prior year.
- The company repurchased approximately $702 million of Accenture plc Class A ordinary shares and $48 million of Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares during the first half of fiscal 2012.
- Cash and cash equivalents stood at $5.6 billion as of February 29, 2012, indicating a strong liquidity position.
- Total net revenues for the first six months of fiscal 2012 increased by 15% year-over-year to $13.87 billion, with 14% growth in local currency.
- The company experienced strong growth in its "Outsourcing" services, with net revenues up 19% year-over-year in the second quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2012, Accenture plc kept $0.09.
- Revenue$7.26B100.0%
- Cost of revenue−$5.14B70.8%
- Gross profit$2.12B29.2%
- Operating costs−$1.23B16.9%
- Operating income$889.3M12.2%
- Interest, other & tax−$245.4M3.4%
- Net income$643.9M8.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2012filed March 23, 2012Financial Statements
Q2 FY2012 against Q2 FY2011
| Line item | Q2 FY2012Q2 FY2011 | Change |
|---|---|---|
| Revenue | $7.26B$6.50B | +11.8% |
| Cost of Revenue | $5.14B$4.58B | +12.3% |
| Gross Profit | $2.12B$1.92B | +10.4% |
| Operating Expenses | $6.37B$5.72B | +11.3% |
| Operating Income | $889.30M$771.58M | +15.3% |
| Interest Expense | $4.22M$3.51M | +20.3% |
| Net Income | $643.92M$503.02M | +28.0% |
| EPS (Basic) | $1.00$0.78 | +28.2% |
| EPS (Diluted) | $0.97$0.75 | +29.3% |
| Shares Outstanding (Basic) | 646.45M646.29M | 0.0% |
| Shares Outstanding (Diluted) | 730.03M743.78M | −1.8% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the second quarter of fiscal year 2012?
Accenture reported net revenues of $6.80 billion for the second quarter of fiscal year 2012, representing a 12% increase in U.S. dollars and a 13% increase in local currency compared to the same period in the prior year.
How did Accenture's profitability change in this quarter?
Accenture's operating income increased by 15% to $889 million in the second quarter of fiscal year 2012. The operating margin also improved to 13.1% from 12.7% in the prior year's second quarter, reflecting effective cost management and revenue growth.
What is Accenture's outlook on future growth and any potential headwinds?
Accenture expects overall growth to continue, driven by strong outsourcing demand and consulting growth. However, they anticipate a moderation in year-over-year growth in the second half of fiscal 2012, particularly in consulting, and acknowledge the ongoing significant economic and geopolitical uncertainty which could adversely affect client businesses and activity levels.
How is Accenture managing its capital and returning value to shareholders?
Accenture generated strong cash flow from operations and maintained a healthy cash position of $5.6 billion. During the first half of fiscal 2012, the company paid cash dividends totaling $474.9 million and repurchased approximately $750 million of its shares, demonstrating a commitment to returning capital to shareholders.
06—Continue