10-QPeriod: Q2 FY2012

Accenture plc Quarterly Report for Q2 Ended Feb 29, 2012

Filed March 23, 2012For Securities:ACN

Summary

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.

Financial Highlights

53 data points
Beta

Revenue

$7.26B

29.2% Gross Margin

Net Income

$643.92M

8.9% Net Margin

EPS (Diluted)

$0.97

Total Assets

$15.81B

Cash & Equivalents

$5.57B

Free Cash Flow

$772.43M

Financial Statements
Beta
Revenue$7.26B
Cost of Revenue$5.14B
Gross Profit$2.12B
Operating Expenses$6.37B
Operating Income$889.30M
Interest Expense$4.22M
Net Income$643.92M
EPS (Basic)$1.00
EPS (Diluted)$0.97
Shares Outstanding (Basic)646.45M
Shares Outstanding (Diluted)730.03M

Key Highlights

  • 1Net revenues for the second quarter of fiscal 2012 increased by 12% year-over-year to $6.80 billion, with 13% growth in local currency.
  • 2Diluted earnings per share (EPS) rose to $0.97 for the second quarter of fiscal 2012, up from $0.75 in the prior year period.
  • 3Operating 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.
  • 4The 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.
  • 5Cash and cash equivalents stood at $5.6 billion as of February 29, 2012, indicating a strong liquidity position.
  • 6Total 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.
  • 7The company experienced strong growth in its "Outsourcing" services, with net revenues up 19% year-over-year in the second quarter.

Frequently Asked Questions

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.

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.

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.

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.