Summary
Accenture plc (ACN) reported strong financial performance for the second quarter and first half of fiscal year 2021, with revenues increasing 8% and 6% in U.S. dollars, respectively, compared to the prior year periods. The company saw particularly robust growth in its outsourcing business, which increased 14% in the second quarter. Net income attributable to Accenture plc was $1.44 billion for the second quarter and $2.94 billion for the first half, representing significant year-over-year growth. Diluted earnings per share also showed a healthy increase, driven by strong operational results and a gain on investment. The company maintained a strong balance sheet with $9.2 billion in cash and cash equivalents as of February 28, 2021. Management highlighted increased demand in specific industries like Public Service and Financial Services, while also noting continued client focus on digital transformation and cost efficiency initiatives. The company continues to manage its workforce and operating expenses effectively, with a healthy utilization rate and a growing headcount to meet client demand.
Financial Highlights
53 data points| Revenue | $12.09B |
| Cost of Revenue | $8.49B |
| Gross Profit | $3.60B |
| Operating Expenses | $10.43B |
| Operating Income | $1.65B |
| Interest Expense | $8.92M |
| Net Income | $1.44B |
| EPS (Basic) | $2.27 |
| EPS (Diluted) | $2.23 |
| Shares Outstanding (Basic) | 635.99M |
| Shares Outstanding (Diluted) | 646.32M |
Key Highlights
- 1Revenue Growth: For the second quarter of fiscal 2021, revenues increased by 8% in U.S. dollars to $12.1 billion, and by 5% in local currency compared to the prior year. For the first six months of fiscal 2021, revenues increased by 6% in U.S. dollars to $23.85 billion, and by 4% in local currency.
- 2Net Income and EPS Growth: Net income attributable to Accenture plc for the second quarter of fiscal 2021 was $1.44 billion, a 17% increase year-over-year. Diluted earnings per share rose to $2.23 from $1.91 in the prior year's second quarter.
- 3Strong Outsourcing Performance: The outsourcing business revenue grew significantly, up 14% in U.S. dollars and 11% in local currency for the second quarter of fiscal 2021, indicating robust client demand for these services.
- 4Healthy Cash Position: The company maintained a strong liquidity position, with cash and cash equivalents totaling $9.2 billion as of February 28, 2021, an increase from $8.4 billion at the end of fiscal year 2020.
- 5Bookings Momentum: New bookings for the second quarter of fiscal 2021 were $16.0 billion, split evenly between consulting and outsourcing, signaling continued client engagement and future revenue potential.
- 6Effective Cost Management: Despite increased labor costs and a one-time bonus, operating expenses as a percentage of revenues decreased slightly for the quarter and the six-month period, demonstrating effective cost management.
- 7Acquisition Activity: Accenture completed several acquisitions during the first half of fiscal 2021, contributing to its growth and service offerings, with total consideration of $1.08 billion.