Summary
Accenture plc's (ACN) 10-Q filing for the period ending November 29, 2012, reveals a solid performance for the first quarter of fiscal year 2013. The company reported a 2% increase in net revenues to $7.22 billion, driven by strong growth in its outsourcing business, which saw a 9% increase in net revenues. While consulting revenues saw a slight decline of 3% in U.S. dollars, growth remained flat in local currency, with specific sectors like Health & Public Service showing strength. The company also demonstrated improved profitability with an operating margin of 14.5%, up from 13.9% in the prior year's comparable quarter, and a notable increase in diluted earnings per share to $1.06 from $0.96. Financially, Accenture maintained a strong liquidity position with $5.7 billion in cash and cash equivalents. The company also actively managed its capital through share repurchases and dividend payments, indicating confidence in its ongoing financial health and commitment to shareholder returns. While facing a challenging economic environment with currency headwinds, Accenture's diversified business and focus on outsourcing services position it to navigate these conditions and pursue future growth.
Financial Highlights
53 data points| Revenue | $7.67B |
| Cost of Revenue | $5.30B |
| Gross Profit | $2.37B |
| Operating Expenses | $6.62B |
| Operating Income | $1.05B |
| Interest Expense | $4.55M |
| Net Income | $698.82M |
| EPS (Basic) | $1.09 |
| EPS (Diluted) | $1.06 |
| Shares Outstanding (Basic) | 639.66M |
| Shares Outstanding (Diluted) | 717.07M |
Key Highlights
- 1Net revenues increased by 2% to $7.22 billion in the first quarter of fiscal 2013 compared to the prior year, with local currency growth at 5%.
- 2Outsourcing net revenues showed robust growth of 9% (13% in local currency), contributing significantly to the company's top line.
- 3Consulting net revenues saw a 3% decrease in U.S. dollars but remained flat in local currency, indicating mixed performance across service lines.
- 4Operating income grew by 7% to $1.049 billion, and operating margin improved to 14.5% from 13.9% year-over-year.
- 5Diluted earnings per share (EPS) increased to $1.06 from $0.96 in the prior year's comparable quarter, representing a significant improvement.
- 6The company maintained a strong liquidity position with $5.679 billion in cash and cash equivalents as of November 30, 2012.
- 7Accenture continued its capital return program, with significant share repurchases and dividend payments during the quarter.