01—Abstract
Summary
Summary of the 10-Q filed March 28, 2019. Cited figures are marked; the original filing is the authoritative source.
Accenture plc's second quarter fiscal year 2019 report shows consistent revenue growth and a strengthened financial position.
Revenues increased by 5%a year-over-year in USD (9% in local currency), driven by robust demand across both consulting and outsourcing services. Net income attributable to Accenture plc rose significantly, demonstrating improved profitability. The company maintained a strong balance sheet with substantial cash reserves and managed its liabilities effectively.
Key operational highlights include solid performance in consulting and outsourcing, with particular strength in the Resources and Communications, Media & Technology segments. The company also highlighted its commitment to returning value to shareholders through share repurchases and dividends. Despite a competitive market, Accenture's strategic focus on digital, cloud, and security services appears to be resonating with clients, indicating a positive outlook for continued growth.
02—Key points
Key Highlights
- Revenues increased by 5% year-over-year to $10.45 billion for the quarter, and by 6% for the first six months of fiscal 2019 to $21.06 billion.
- Net income attributable to Accenture plc rose by 30.2% year-over-year to $1.12 billion for the quarter, and by 20.7% for the first six months to $2.40 billion.
- Diluted earnings per share (EPS) increased to $1.73 for the quarter, up from $1.37 in the prior year, and to $3.69 for the six months, up from $3.16.
- The company repurchased approximately $1.78 billion of its Class A ordinary shares during the six-month period, demonstrating a commitment to shareholder returns.
- Cash and cash equivalents stood at $4.46 billion at the end of the period, providing ample liquidity.
- Gross margin improved to 29.2% for the quarter and 30.2% for the six months, indicating enhanced operational efficiency.
- New bookings for the quarter reached $11.8 billion, with $6.7 billion in consulting and $5.1 billion in outsourcing.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2019, Accenture plc kept $0.11.
- Revenue$10.45B100.0%
- Cost of revenue−$7.40B70.8%
- Gross profit$3.05B29.2%
- Operating costs−$1.67B16.0%
- Operating income$1.39B13.3%
- Interest, other & tax−$262.2M2.5%
- Net income$1.12B10.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2019filed March 28, 2019Financial Statements
Q2 FY2019 against Q2 FY2018
| Line item | Q2 FY2019Q2 FY2018 | Change |
|---|---|---|
| Revenue | $10.45B$9.91B | +5.5% |
| Cost of Revenue | $7.40B$7.05B | +5.0% |
| Gross Profit | $3.05B$2.86B | +6.8% |
| Operating Expenses | $9.07B$8.61B | +5.3% |
| Operating Income | $1.39B$1.30B | +7.0% |
| Interest Expense | $5.62M$3.84M | +46.3% |
| Net Income | $1.12B$863.70M | +30.2% |
| EPS (Basic) | $1.76$1.40 | +25.7% |
| EPS (Diluted) | $1.73$1.37 | +26.3% |
| Shares Outstanding (Basic) | 638.64M617.85M | +3.4% |
| Shares Outstanding (Diluted) | 649.17M656.12M | −1.1% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the reported quarter and year-to-date?
For the second quarter of fiscal 2019, Accenture reported revenues of $10.45 billion, a 5% increase in U.S. dollars and a 9% increase in local currency compared to the same period in fiscal 2018. For the first six months of fiscal 2019, revenues were $21.06 billion, up 6% in U.S. dollars and 9% in local currency year-over-year.
How did Accenture's profitability change in this period?
Accenture demonstrated strong profit growth. Net income attributable to Accenture plc increased by 30.2% to $1.12 billion for the quarter, and by 20.7% to $2.40 billion for the six-month period. Diluted earnings per share rose to $1.73 for the quarter and $3.69 for the six months.
What is Accenture's current financial position, particularly regarding cash and liquidity?
Accenture maintains a robust financial position. As of February 28, 2019, the company had $4.46 billion in cash and cash equivalents. Operating activities generated $2.39 billion in cash for the six months, indicating strong cash flow generation capabilities and ample liquidity to meet its obligations and fund future growth.
How is Accenture returning capital to shareholders?
Accenture is actively returning capital to shareholders through share repurchases and dividends. During the six months ended February 28, 2019, the company repurchased approximately $1.78 billion of its Class A ordinary shares. It also declared and paid cash dividends, with a total cash outlay of $932.8 million for the first six months of fiscal 2019.
06—Continue