Summary
Accenture plc reported solid financial results for the six months ended February 28, 2017, with net revenues increasing by 5% in U.S. dollars and 7% in local currency compared to the prior year period. This growth was driven by strong demand across consulting and outsourcing services, particularly in the Products and Financial Services sectors. The company demonstrated effective cost management, with operating margin remaining stable at 13.7% for the quarter and improving slightly to 14.7% for the six-month period. Despite a challenging economic environment with global uncertainties and foreign currency fluctuations, Accenture's strategy focused on digital, cloud, and security-related services is yielding positive results. The company's workforce grew to approximately 401,000 professionals, reflecting increased demand. Shareholder returns were supported by dividend payments and ongoing share repurchase programs, underscoring a commitment to returning value to investors.
Financial Highlights
53 data points| Revenue | $8.76B |
| Cost of Revenue | $6.26B |
| Gross Profit | $2.50B |
| Operating Expenses | $7.62B |
| Operating Income | $1.14B |
| Interest Expense | $3.98M |
| Net Income | $838.75M |
| EPS (Basic) | $1.35 |
| EPS (Diluted) | $1.33 |
| Shares Outstanding (Basic) | 622.00M |
| Shares Outstanding (Diluted) | 661.08M |
Key Highlights
- 1Net revenues grew 5% in USD and 6% in local currency for the second quarter of fiscal 2017, and 5% in USD and 7% in local currency for the first six months.
- 2Operating income increased by 5% to $1.139 billion for the second quarter and by 7% to $2.471 billion for the first six months.
- 3Diluted Earnings Per Share (EPS) were $1.33 for the second quarter and $2.91 for the first six months, down from the prior year largely due to a significant gain on sale of business in the prior year's comparable periods.
- 4Strong growth was observed in the Products segment (14% USD, 15% local currency for Q2) and Financial Services (5% USD, 8% local currency for Q2).
- 5Headcount increased to approximately 401,000 as of February 28, 2017, up from approximately 373,000 a year prior, indicating increased demand for services.
- 6The company returned capital to shareholders through cash dividends ($785 million for the six months) and share repurchases ($1.4 billion for the six months).