Summary
Accenture plc (ACN) reported its second quarter fiscal year 2016 results, demonstrating solid top-line growth driven by strong demand across its consulting and outsourcing services. Net revenues increased 6% in U.S. dollars and 12% in local currency, with particularly robust growth in the Health & Public Service, Products, and Communications, Media & Technology segments. This growth was supported by a significant increase in headcount and a stable utilization rate. A notable event during the quarter was the gain on the sale of the Navitaire business, which substantially boosted net income and earnings per share. However, excluding this one-time gain, the company showed steady operational performance with improved effective tax rates contributing positively to diluted earnings per share. The company also continued its capital return program through share repurchases and dividends, underscoring its commitment to shareholder value.
Financial Highlights
53 data points| Revenue | $8.40B |
| Cost of Revenue | $6.03B |
| Gross Profit | $2.37B |
| Operating Expenses | $7.31B |
| Operating Income | $1.09B |
| Interest Expense | $4.54M |
| Net Income | $1.33B |
| EPS (Basic) | $2.12 |
| EPS (Diluted) | $2.08 |
| Shares Outstanding (Basic) | 626.52M |
| Shares Outstanding (Diluted) | 668.13M |
Key Highlights
- 1Net revenues grew 6% in U.S. dollars and 12% in local currency for the second quarter of fiscal 2016, indicating strong client demand.
- 2The Health & Public Service segment saw a notable 15% local currency revenue increase, alongside strong performance in Products (14%) and Communications, Media & Technology (13%).
- 3Diluted earnings per share significantly increased to $2.08 from $1.08 in the prior year, largely due to a $554 million gain from the Navitaire divestiture.
- 4Excluding the Navitaire gain, diluted earnings per share were $1.34, up from $1.08, primarily driven by a lower effective tax rate and revenue growth.
- 5The company's headcount increased to approximately 373,000 as of February 29, 2016, reflecting continued investment in talent to meet demand.
- 6Operating cash flow decreased to $929 million from $1,174 million in the prior year period, influenced by changes in working capital and higher compensation payments.
- 7Accenture maintained a strong balance sheet with $3.0 billion in cash and cash equivalents as of February 29, 2016, and had $1.6 billion in undrawn borrowing facilities.