01—Abstract
Summary
Summary of the 10-Q filed March 23, 2017. Cited figures are marked; the original filing is the authoritative source.
Accenture plc reported solid financial results for the six months ended February 28, 2017, with net revenues increasing by 5%a 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%b 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.
02—Key points
Key Highlights
- Net 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.
- Operating income increased by 5% to $1.139 billion for the second quarter and by 7% to $2.471 billion for the first six months.
- Diluted 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.
- Strong growth was observed in the Products segment (14% USD, 15% local currency for Q2) and Financial Services (5% USD, 8% local currency for Q2).
- Headcount increased to approximately 401,000 as of February 28, 2017, up from approximately 373,000 a year prior, indicating increased demand for services.
- The company returned capital to shareholders through cash dividends ($785 million for the six months) and share repurchases ($1.4 billion for the six months).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2017, Accenture plc kept $0.10.
- Revenue$8.76B100.0%
- Cost of revenue−$6.26B71.4%
- Gross profit$2.50B28.6%
- Operating costs−$1.37B15.6%
- Operating income$1.14B13.0%
- Interest, other & tax−$299.9M3.4%
- Net income$838.8M9.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2017filed March 23, 2017Financial Statements
Q2 FY2017 against Q2 FY2016
| Line item | Q2 FY2017Q2 FY2016 | Change |
|---|---|---|
| Revenue | $8.76B$8.40B | +4.3% |
| Cost of Revenue | $6.26B$6.03B | +3.8% |
| Gross Profit | $2.50B$2.37B | +5.7% |
| Operating Expenses | $7.62B$7.31B | +4.3% |
| Operating Income | $1.14B$1.09B | +4.7% |
| Interest Expense | $3.98M$4.54M | −12.5% |
| Net Income | $838.75M$1.33B | −36.8% |
| EPS (Basic) | $1.35$2.12 | −36.3% |
| EPS (Diluted) | $1.33$2.08 | −36.1% |
| Shares Outstanding (Basic) | 622.00M626.52M | −0.7% |
| Shares Outstanding (Diluted) | 661.08M668.13M | −1.1% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue growth in the reported period?
For the second quarter of fiscal 2017, Accenture's net revenues grew 5% in U.S. dollars and 6% in local currency compared to the same period in the prior year. For the first six months of fiscal 2017, net revenues increased 5% in U.S. dollars and 7% in local currency compared to the prior year.
How did the company's profitability perform?
Operating income increased 5% to $1.139 billion for the second quarter and 7% to $2.471 billion for the first six months, indicating solid operational performance. Operating margin remained stable at 13.7% for the quarter and improved slightly to 14.7% for the six-month period.
What is the outlook for key growth segments?
The Products segment showed very strong growth, increasing 14% in U.S. dollars and 15% in local currency for the second quarter. Financial Services also demonstrated solid growth of 5% in U.S. dollars and 8% in local currency. The company continues to see demand for digital-, cloud-, and security-related services.
How is Accenture managing its workforce and capital allocation?
Accenture's workforce grew to approximately 401,000 professionals by February 28, 2017, reflecting demand. The company returned capital to shareholders through $785 million in cash dividends and $1.4 billion in share repurchases during the first six months of fiscal 2017, indicating a continued focus on shareholder returns.
06—Continue