10-QPeriod: Q1 FY2018

Accenture plc Quarterly Report for Q1 Ended Nov 30, 2017

Filed December 21, 2017For Securities:ACN

Summary

Accenture plc's Form 10-Q filing for the quarter ending November 30, 2017, showcases robust top-line growth and solid profitability. Net revenues increased by 12% in U.S. dollars and 10% in local currency compared to the prior year's first quarter, driven by strong demand across all service areas, particularly in consulting and outsourcing. The company demonstrated operational efficiency, with operating expenses remaining flat as a percentage of revenue, leading to a stable operating margin of 15.6%. Diluted earnings per share saw a significant increase of 13.3% to $1.79, reflecting both revenue growth and a reduction in weighted average shares outstanding. The company maintained a strong liquidity position with over $3.6 billion in cash and cash equivalents. While cash from operations decreased slightly year-over-year, this was attributed to working capital changes, with investing activities showing reduced outflows due to lower acquisition spending. Accenture continued its commitment to returning capital to shareholders through dividends and share repurchases, underscoring its financial health and confidence in future performance.

Financial Highlights

53 data points
Beta

Revenue

$9.88B

31.0% Gross Margin

Net Income

$1.12B

11.4% Net Margin

EPS (Diluted)

$1.79

Total Assets

$22.97B

Cash & Equivalents

$3.68B

Free Cash Flow

$872.49M

Financial Statements
Beta
Revenue$9.88B
Cost of Revenue$6.82B
Gross Profit$3.06B
Operating Expenses$8.39B
Operating Income$1.50B
Interest Expense$4.71M
Net Income$1.12B
EPS (Basic)$1.82
EPS (Diluted)$1.79
Shares Outstanding (Basic)615.84M
Shares Outstanding (Diluted)656.67M

Key Highlights

  • 1Net revenues grew 12% year-over-year to $9.52 billion, indicating strong client demand.
  • 2Diluted earnings per share increased by 13.3% to $1.79 compared to the prior year's first quarter.
  • 3Operating margin remained stable at 15.6%, showcasing effective cost management despite revenue growth.
  • 4Cash and cash equivalents stood at $3.68 billion as of November 30, 2017, indicating healthy liquidity.
  • 5The company actively returned capital to shareholders, with $853.6 million in cash dividends paid and significant share repurchases during the quarter.
  • 6Consulting net revenues increased 13% and Outsourcing net revenues increased 11% year-over-year, demonstrating balanced growth across service lines.
  • 7Headcount increased to approximately 435,000 professionals globally as of November 30, 2017, reflecting expansion to meet client demand.

Frequently Asked Questions

Accenture reported strong revenue growth, with net revenues increasing by 12% in U.S. dollars (and 10% in local currency) to $9.52 billion for the first quarter of fiscal year 2018, compared to the same period in the prior year. This growth was driven by robust demand across all service areas.

The company demonstrated solid profitability. Operating income increased by 12% to $1.49 billion, and the operating margin remained stable at 15.6%. Diluted earnings per share saw a significant increase of 13.3% to $1.79, up from $1.58 in the prior year's first quarter.

As of November 30, 2017, Accenture maintained a strong liquidity position with cash and cash equivalents totaling $3.68 billion. The company believes its current and longer-term working capital, investments, and general corporate funding requirements will be met through cash flows from operations and available borrowing facilities.

Accenture continues to return capital to shareholders through dividends and share repurchases. For the three months ended November 30, 2017, the company paid $853.6 million in cash dividends and also engaged in share purchases, demonstrating a commitment to shareholder value.