Summary
Accenture plc (ACN) reported its third-quarter fiscal year 2014 results, ending May 31, 2014. The company demonstrated solid revenue growth, with net revenues increasing by 7% in U.S. dollars and local currency to $7.74 billion for the quarter. This growth was driven by an increase in both consulting and outsourcing services, with outsourcing showing particularly strong performance at 10% growth in U.S. dollars. The company's financial position remained robust, though cash and cash equivalents saw a decrease compared to the prior fiscal year-end, largely due to significant share repurchases and dividend payments. For the nine-month period, net revenues grew 3% in U.S. dollars to $22.23 billion. While overall revenue growth was positive, operating income for the nine-month period decreased year-over-year, partly due to the absence of certain one-time benefits recorded in the prior year. Diluted earnings per share for the nine months also saw a decrease compared to the prior year, again influenced by the prior year's favorable non-recurring items. Investors should note the company's continued investment in acquisitions, as evidenced by the increase in goodwill on the balance sheet, and its ongoing commitment to returning capital to shareholders through share repurchases and dividends.
Financial Highlights
52 data points| Revenue | $8.24B |
| Cost of Revenue | $5.70B |
| Gross Profit | $2.54B |
| Operating Expenses | $7.06B |
| Operating Income | $1.18B |
| Interest Expense | $4.29M |
| Net Income | $817.34M |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 633.13M |
| Shares Outstanding (Diluted) | 691.04M |
Key Highlights
- 1Net revenues increased by 7% year-over-year to $7.74 billion for the third quarter of fiscal 2014.
- 2Outsourcing services revenue grew by 10% year-over-year in U.S. dollars during the third quarter.
- 3Consulting services revenue increased by 6% year-over-year in U.S. dollars for the third quarter.
- 4Total assets increased to $17.0 billion as of May 31, 2014, from $16.9 billion at the end of fiscal 2013.
- 5Goodwill increased significantly to $2.35 billion from $1.82 billion, driven by acquisitions including Procurian Inc.
- 6Diluted earnings per share for the third quarter were $1.26, an increase from $1.21 in the prior year.
- 7Cash and cash equivalents decreased to $4.05 billion from $5.63 billion, reflecting significant cash deployment in share repurchases and dividends.