10-QPeriod: Q2 FY2019

Accenture plc Quarterly Report for Q2 Ended Feb 28, 2019

Filed March 28, 2019For Securities:ACN

Summary

Accenture plc's second quarter fiscal year 2019 report shows consistent revenue growth and a strengthened financial position. Revenues increased by 5% 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.

Financial Highlights

53 data points
Beta

Revenue

$10.45B

29.2% Gross Margin

Net Income

$1.12B

10.8% Net Margin

EPS (Diluted)

$1.73

Total Assets

$27.39B

Cash & Equivalents

$4.46B

Free Cash Flow

$1.22B

Financial Statements
Beta
Revenue$10.45B
Cost of Revenue$7.40B
Gross Profit$3.05B
Operating Expenses$9.07B
Operating Income$1.39B
Interest Expense$5.62M
Net Income$1.12B
EPS (Basic)$1.76
EPS (Diluted)$1.73
Shares Outstanding (Basic)638.64M
Shares Outstanding (Diluted)649.17M

Key Highlights

  • 1Revenues 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.
  • 2Net 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.
  • 3Diluted 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.
  • 4The company repurchased approximately $1.78 billion of its Class A ordinary shares during the six-month period, demonstrating a commitment to shareholder returns.
  • 5Cash and cash equivalents stood at $4.46 billion at the end of the period, providing ample liquidity.
  • 6Gross margin improved to 29.2% for the quarter and 30.2% for the six months, indicating enhanced operational efficiency.
  • 7New bookings for the quarter reached $11.8 billion, with $6.7 billion in consulting and $5.1 billion in outsourcing.

Frequently Asked Questions

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.

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.

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.

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.