10-QPeriod: Q1 FY2021

Accenture plc Quarterly Report for Q1 Ended Nov 30, 2020

Filed December 17, 2020For Securities:ACN

Summary

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 billion, 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 billion, 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.

Financial Highlights

53 data points
Beta

Revenue

$11.76B

33.1% Gross Margin

Net Income

$1.50B

12.8% Net Margin

EPS (Diluted)

$2.32

Total Assets

$38.27B

Cash & Equivalents

$8.59B

Free Cash Flow

$1.51B

Financial Statements
Beta
Revenue$11.76B
Cost of Revenue$7.86B
Gross Profit$3.90B
Operating Expenses$9.87B
Operating Income$1.89B
Interest Expense$8.85M
Net Income$1.50B
EPS (Basic)$2.37
EPS (Diluted)$2.32
Shares Outstanding (Basic)634.27M
Shares Outstanding (Diluted)646.88M

Key Highlights

  • 1Revenues grew 4% year-over-year to $11.76 billion, with 2% growth in local currency, showing sequential improvement.
  • 2Net 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.
  • 3Outsourcing 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).
  • 4Operating income increased by 7% to $1.89 billion, with operating margin improving to 16.1% from 15.6% in the prior year.
  • 5The company maintained a strong balance sheet with $8.6 billion in cash and cash equivalents as of November 30, 2020.
  • 6Accenture returned significant capital to shareholders through $558 million in cash dividends paid and $768 million in share repurchases during the quarter.
  • 7Goodwill increased by approximately $395 million to $8.13 billion, primarily due to acquisitions.

Frequently Asked Questions

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%.

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%.

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).

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.