Summary
Accenture plc's Q3 FY15 filing for the period ending May 30, 2015, shows resilient top-line growth driven by strong performance in local currency, particularly in Consulting and Outsourcing services across key segments like Communications, Media & Technology and Health & Public Service. While net revenues saw a slight increase in U.S. dollars, the company experienced significant positive impact from foreign currency fluctuations, with local currency growth outperforming reported figures. The company demonstrated effective cost management, with sales and marketing, and general and administrative expenses decreasing as a percentage of net revenues year-over-year. Despite a one-time $64 million pension settlement charge impacting short-term profitability and operating margin, Accenture maintained a solid operational performance. Diluted earnings per share remained strong, even after accounting for the charge, showcasing the company's ability to manage its P&L effectively. The company also continued its commitment to returning capital to shareholders through robust share repurchase programs and dividend payments, indicating confidence in its financial health and future prospects. Liquidity remains strong, with substantial cash and cash equivalents and ample borrowing facilities, positioning Accenture to navigate economic uncertainties and pursue strategic growth opportunities.
Financial Highlights
53 data points| Revenue | $8.28B |
| Cost of Revenue | $5.75B |
| Gross Profit | $2.52B |
| Operating Expenses | $7.14B |
| Operating Income | $1.13B |
| Interest Expense | $4.03M |
| Net Income | $793.70M |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.24 |
| Shares Outstanding (Basic) | 625.97M |
| Shares Outstanding (Diluted) | 677.83M |
Key Highlights
- 1Net revenues increased slightly in U.S. dollars but showed robust growth of 10% in local currency for the third quarter and 4% in U.S. dollars (11% in local currency) for the nine months ended May 31, 2015, indicating strong underlying business demand.
- 2The company reported a $64 million non-cash pension settlement charge in the third quarter of fiscal 2015, which impacted operating income and diluted EPS, but the underlying business performance remained solid.
- 3Operating margin for the third quarter decreased to 14.6% from 15.2% year-over-year, primarily due to the pension settlement charge. Excluding this charge, operating margin increased by 20 basis points, indicating improved operational efficiency.
- 4Diluted earnings per share (EPS) were $1.24 for Q3 FY15, down from $1.26 in Q3 FY14, impacted by the pension charge. Excluding the charge, EPS increased, demonstrating earnings resilience.
- 5The company reported strong bookings, with $8.53 billion for the third quarter and $25.55 billion for the nine months ended May 31, 2015, signaling continued client engagement and future revenue potential.
- 6Accenture maintained a strong liquidity position with $4.0 billion in cash and cash equivalents and $1.67 billion in available borrowing facilities as of May 31, 2015.
- 7Shareholder returns were significant, with $1.35 billion in cash dividends paid and substantial share repurchases during the nine months ended May 31, 2015, reflecting a commitment to capital allocation.