01—Abstract
Summary
Summary of the 10-Q filed December 17, 2020. Cited figures are marked; the original filing is the authoritative source.
Accenture plc reported solid financial performance for the first quarter of fiscal year 2021, ending November 30, 2020.
Revenues increased by 4% year-over-year to $11.76 billiona, driven by a 2% increase in local currency. This growth, while slower than the previous year, showed improvement from the latter half of fiscal 2020, indicating resilience amidst the ongoing COVID-19 pandemic. The company's outsourcing segment demonstrated robust growth, while its consulting segment experienced a slight decline.
Net income attributable to Accenture plc rose to $1.50 billionb, resulting in diluted earnings per share of $2.32, up from $2.09 in the prior year period. The company also maintained a strong liquidity position, with cash and cash equivalents of $8.6 billion.
Accenture continued its capital return strategy, with significant share repurchases and dividend payments. Despite ongoing economic uncertainties and the impact of the pandemic, Accenture's diversified service offerings and global reach appear to be supporting its performance.
02—Key points
Key Highlights
- Revenues grew 4% year-over-year to $11.76 billion, with 2% growth in local currency, showing sequential improvement.
- Net income attributable to Accenture plc increased to $1.50 billion, leading to a diluted EPS of $2.32, up from $2.09 in the prior year.
- Outsourcing revenue saw strong growth (9% in USD, 8% in local currency), while consulting revenue experienced a slight decline (-1% in USD, -2% in local currency).
- Operating income increased by 7% to $1.89 billion, with operating margin improving to 16.1% from 15.6% in the prior year.
- The company maintained a strong balance sheet with $8.6 billion in cash and cash equivalents as of November 30, 2020.
- Accenture returned significant capital to shareholders through $558 million in cash dividends paid and $768 million in share repurchases during the quarter.
- Goodwill increased by approximately $395 million to $8.13 billion, primarily due to acquisitions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2021, Accenture plc kept $0.13.
- Revenue$11.76B100.0%
- Cost of revenue−$7.86B66.9%
- Gross profit$3.90B33.1%
- Operating costs−$2.01B17.1%
- Operating income$1.89B16.1%
- Interest, other & tax−$390.4M3.3%
- Net income$1.50B12.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2021filed December 17, 2020Financial Statements
Q1 FY2021 against Q1 FY2020
| Line item | Q1 FY2021Q1 FY2020 | Change |
|---|---|---|
| Revenue | $11.76B$11.36B | +3.5% |
| Cost of Revenue | $7.86B$7.71B | +2.0% |
| Gross Profit | $3.90B$3.65B | +6.9% |
| Operating Expenses | $9.87B$9.59B | +2.9% |
| Operating Income | $1.89B$1.77B | +7.0% |
| Interest Expense | $8.85M$5.47M | +61.7% |
| Net Income | $1.50B$1.36B | +10.6% |
| EPS (Basic) | $2.37$2.13 | +11.3% |
| EPS (Diluted) | $2.32$2.09 | +11.0% |
| Shares Outstanding (Basic) | 634.27M635.72M | −0.2% |
| Shares Outstanding (Diluted) | 646.88M649.39M | −0.4% |
05—Questions
Frequently Asked Questions
How did Accenture's revenue perform in Q1 FY21 compared to Q1 FY20?
Accenture's revenue for the first quarter of fiscal year 2021 increased by 4% in U.S. dollars to $11.76 billion, compared to $11.36 billion in the same period of fiscal year 2020. On a local currency basis, revenue grew by 2%.
What was the profitability performance for Accenture in this quarter?
Net income attributable to Accenture plc for the quarter was $1.50 billion, an increase from $1.36 billion in the prior year's quarter. Diluted earnings per share rose to $2.32 from $2.09 year-over-year. Operating income also grew by 7% to $1.89 billion, with operating margin improving to 16.1%.
How did the different service lines (Consulting vs. Outsourcing) perform?
The Outsourcing segment showed strong performance with revenues increasing by 9% in U.S. dollars (8% in local currency). The Consulting segment experienced a slight decline, with revenues decreasing by 1% in U.S. dollars (-2% in local currency).
What is Accenture's current financial position regarding cash and debt?
As of November 30, 2020, Accenture had $8.6 billion in cash and cash equivalents. The company also had access to substantial borrowing facilities totaling $3.3 billion, with no amounts drawn under these facilities as of the reporting date. This indicates a strong liquidity position.
06—Continue