Accenture plc Quarterly Report for Q3 Ended May 31, 2020

Summary

Accenture plc reported revenues of $10.99 billion for the third quarter of fiscal year 2020, a 1% decrease in U.S. dollars but a 1% increase in local currency compared to the prior year. This performance was significantly impacted by the COVID-19 pandemic, which led to a shift towards remote work for most employees and reduced demand in certain industries like Travel, Retail, and Energy, while digital transformation and cloud services saw increased demand. Despite revenue pressures, the company maintained a strong operating income of $1.71 billion and a slightly improved operating margin of 15.6%. Diluted earnings per share were $1.90, a modest decrease from $1.93 in the prior year, largely due to increased non-operating expenses and higher net income attributable to non-controlling interests. The company also reported robust operating cash flow and maintained a strong liquidity position with $6.4 billion in cash and cash equivalents, underscoring its financial resilience amidst challenging economic conditions.

Key Highlights

• 1Q3 FY2020 revenues were $10.99 billion, down 1% in USD but up 1% in local currency, impacted by COVID-19.
• 2Operating income remained strong at $1.71 billion, with a slightly improved operating margin of 15.6%.
• 3Diluted Earnings Per Share (EPS) was $1.90, down from $1.93 in the prior year's quarter.
• 4Significant shift to remote work, with approximately 95% of the workforce enabled to work remotely.
• 5Demand saw a decline in Travel, Retail, Energy, High Tech, and Industrial sectors, while digital, cloud, and security services experienced increased demand.
• 6Strong operating cash flow of $5.06 billion for the nine months ended May 31, 2020, up from $4.51 billion in the prior year.
• 7Company maintained a robust cash position of $6.44 billion as of May 31, 2020, and added a $1 billion syndicated loan facility in June 2020 for liquidity.

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