01—Abstract
Summary
Summary of the 10-Q filed December 21, 2017. Cited figures are marked; the original filing is the authoritative source.
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 $1.79a, reflecting both revenue growth and a reduction in weighted average shares outstanding.
The company maintained a strong liquidity position with over $3.6 billionb 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.
02—Key points
Key Highlights
- Net revenues grew 12% year-over-year to $9.52 billion, indicating strong client demand.
- Diluted earnings per share increased by 13.3% to $1.79 compared to the prior year's first quarter.
- Operating margin remained stable at 15.6%, showcasing effective cost management despite revenue growth.
- Cash and cash equivalents stood at $3.68 billion as of November 30, 2017, indicating healthy liquidity.
- The company actively returned capital to shareholders, with $853.6 million in cash dividends paid and significant share repurchases during the quarter.
- Consulting net revenues increased 13% and Outsourcing net revenues increased 11% year-over-year, demonstrating balanced growth across service lines.
- Headcount increased to approximately 435,000 professionals globally as of November 30, 2017, reflecting expansion to meet client demand.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2018, Accenture plc kept $0.11.
- Revenue$9.88B100.0%
- Cost of revenue−$6.82B69.0%
- Gross profit$3.06B31.0%
- Operating costs−$1.57B15.8%
- Operating income$1.50B15.2%
- Interest, other & tax−$374.5M3.8%
- Net income$1.12B11.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2018filed December 21, 2017Financial Statements
Q1 FY2018 against Q1 FY2017
| Line item | Q1 FY2018Q1 FY2017 | Change |
|---|---|---|
| Revenue | $9.88B$9.01B | +9.8% |
| Cost of Revenue | $6.82B$6.28B | +8.7% |
| Gross Profit | $3.06B$2.73B | +12.2% |
| Operating Expenses | $8.39B$7.67B | +9.3% |
| Operating Income | $1.50B$1.33B | +12.5% |
| Interest Expense | $4.71M$3.05M | +54.4% |
| Net Income | $1.12B$1.00B | +11.9% |
| EPS (Basic) | $1.82$1.62 | +12.3% |
| EPS (Diluted) | $1.79$1.58 | +13.3% |
| Shares Outstanding (Basic) | 615.84M621.57M | −0.9% |
| Shares Outstanding (Diluted) | 656.67M663.75M | −1.1% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance for the first quarter of fiscal year 2018?
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.
How did profitability fare during the quarter?
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.
What is Accenture's liquidity position as of November 30, 2017?
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.
How is Accenture returning capital to shareholders?
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.
06—Continue