01—Abstract
Summary
Summary of the 10-Q filed December 20, 2012. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb 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.
02—Key points
Key Highlights
- Net 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%.
- Outsourcing net revenues showed robust growth of 9% (13% in local currency), contributing significantly to the company's top line.
- Consulting net revenues saw a 3% decrease in U.S. dollars but remained flat in local currency, indicating mixed performance across service lines.
- Operating income grew by 7% to $1.049 billion, and operating margin improved to 14.5% from 13.9% year-over-year.
- Diluted earnings per share (EPS) increased to $1.06 from $0.96 in the prior year's comparable quarter, representing a significant improvement.
- The company maintained a strong liquidity position with $5.679 billion in cash and cash equivalents as of November 30, 2012.
- Accenture continued its capital return program, with significant share repurchases and dividend payments during the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2013, Accenture plc kept $0.09.
- Revenue$7.67B100.0%
- Cost of revenue−$5.30B69.1%
- Gross profit$2.37B30.9%
- Operating costs−$1.32B17.2%
- Operating income$1.05B13.7%
- Interest, other & tax−$349.9M4.6%
- Net income$698.8M9.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2013filed December 20, 2012Financial Statements
Q1 FY2013 against Q1 FY2012
| Line item | Q1 FY2013Q1 FY2012 | Change |
|---|---|---|
| Revenue | $7.67B$7.59B | +1.0% |
| Cost of Revenue | $5.30B$5.34B | −0.7% |
| Gross Profit | $2.37B$2.25B | +5.1% |
| Operating Expenses | $6.62B$6.61B | +0.2% |
| Operating Income | $1.05B$981.14M | +6.9% |
| Interest Expense | $4.55M$4.16M | +9.4% |
| Net Income | $698.82M$642.09M | +8.8% |
| EPS (Basic) | $1.09$1.00 | +9.0% |
| EPS (Diluted) | $1.06$0.96 | +10.4% |
| Shares Outstanding (Basic) | 639.66M644.29M | −0.7% |
| Shares Outstanding (Diluted) | 717.07M730.92M | −1.9% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the first quarter of fiscal year 2013?
Accenture reported net revenues of $7.22 billion for the first quarter of fiscal year 2013, a 2% increase in U.S. dollars and a 5% increase in local currency compared to the same period in the prior year. This growth was primarily driven by a strong performance in the outsourcing business.
How did the different service lines (consulting vs. outsourcing) perform?
The outsourcing business showed significant strength with a 9% increase in net revenues (13% in local currency). Consulting revenues experienced a 3% decrease in U.S. dollars but were flat in local currency. While some segments like Health & Public Service showed strong consulting growth, others saw moderations or declines.
What is the company's profitability and earnings per share trend?
Accenture demonstrated improved profitability, with operating income rising 7% to $1.049 billion and operating margin expanding to 14.5% from 13.9% year-over-year. Diluted earnings per share also saw a notable increase, growing to $1.06 from $0.96 in the prior year's comparable quarter.
What is Accenture's current liquidity position?
As of November 30, 2012, Accenture maintained a healthy liquidity position with $5.679 billion in cash and cash equivalents, although this represented a decrease from $6.641 billion at the end of the previous fiscal year. The company believes its current cash balances and expected operational cash flows are sufficient to meet its short-term needs.
06—Continue