Summary
Accenture plc reported solid performance for the first quarter of fiscal year 2020, ending November 30, 2019. Revenues grew by 7% in U.S. dollars and 9% in local currency, demonstrating continued strong demand for its consulting and outsourcing services across all its operating segments. The company experienced robust growth in Health & Public Service and Products, with other segments also showing positive trends. Diluted earnings per share increased to $2.09 from $1.96 in the prior year's comparable quarter. The company also adopted new lease accounting standards (Topic 842) effective September 1, 2019, which resulted in the recognition of significant lease assets and liabilities on the balance sheet, impacting non-current assets and current/non-current liabilities. Despite a decrease in cash and cash equivalents from the prior quarter, the company maintains a strong liquidity position and expects its current and longer-term working capital requirements to be met through operational cash flows and existing borrowing facilities.
Financial Highlights
53 data points| Revenue | $11.36B |
| Cost of Revenue | $7.71B |
| Gross Profit | $3.65B |
| Operating Expenses | $9.59B |
| Operating Income | $1.77B |
| Interest Expense | $5.47M |
| Net Income | $1.36B |
| EPS (Basic) | $2.13 |
| EPS (Diluted) | $2.09 |
| Shares Outstanding (Basic) | 635.72M |
| Shares Outstanding (Diluted) | 649.39M |
Key Highlights
- 1Revenues increased by 7% year-over-year to $11.36 billion, with a 9% increase in local currency, indicating strong client demand.
- 2Diluted Earnings Per Share (EPS) grew to $2.09 from $1.96 in the prior year's quarter, reflecting improved profitability.
- 3Significant adoption of new lease accounting standards (Topic 842) resulted in the recognition of approximately $3.17 billion in lease assets and $3.35 billion in lease liabilities on the balance sheet as of November 30, 2019.
- 4Goodwill increased by $94.5 million to $6.3 billion, primarily driven by acquisitions and foreign currency translation, indicating continued investment in growth.
- 5Operating income increased by 8% to $1.77 billion, and operating margin slightly improved to 15.6% from 15.4% in the prior year's quarter.
- 6The company repurchased approximately $725 million of its shares during the quarter, reflecting a commitment to returning capital to shareholders.
- 7Cash and cash equivalents decreased to $5.81 billion from $6.13 billion in the prior quarter, mainly due to changes in operating assets/liabilities and dividend payments.