Accenture reports record profits in Q3
Date: 02-07-2008
Source: Consultant News
Consultancy Accenture reported strong financial results for the third quarter of fiscal 2008, ended May 31, with net revenues of $6.10 billion, a year-over year increase of 20 percent in US dollars and 12 percent in local currency and the highest quarterly net revenues in the company's history.
Consulting and outsourcing revenues were both quarterly records, growing by double digits in US dollars and local currency. Earnings per share were $0.74, the highest for any quarter in the company's history and an increase of 36 percent over the third quarter of fiscal 2007, driven largely by strong growth in revenue and operating income.
In addition, the company has again raised its outlook for earnings per share for the full fiscal year 2008, to a range of $2.63 to $2.65 from its previously guided range of $2.55 to $2.60. New bookings were $6.77 billion, with record quarterly consulting bookings of $3.98 billion.
The company grew operating income by 27 percent and expanded its operating margin by 70 basis points over the third quarter last year.
William D. Green, Accenture's chairman & CEO, said: "Our excellent results in the third quarter include our highest-ever quarterly revenues and earnings per share. In addition, our disciplined approach to managing our diverse and global business enabled us to expand our operating margin, and the solid bookings we achieved demonstrate continued strong global demand for our services, even in markets experiencing difficult economic conditions."
Net revenues for the third quarter of fiscal 2008 were $6.10 billion, compared with $5.08 billion for the third quarter of fiscal 2007, an increase of 20 percent in US dollars and 12 percent in local currency.
Accenture Consulting net revenues were $3.70 billion, an increase of 20 percent in US dollars and 12 percent in local currency over the third quarter last year.
Outsourcing net revenues were $2.40 billion, also an increase of 20 percent in US dollars and 12 percent in local currency over the same period last year.
New bookings for the third quarter of fiscal 2008 were $6.77 billion. Consulting bookings were $3.98 billion, or 59 percent of new bookings, while outsourcing accounted for $2.79 billion, or 41 percent, of new bookings.
Net revenues for Accenture's five operating groups were as follows:
-- Communications & High Tech: $1,388 million, compared with $1,201 million for the third quarter of fiscal 2007, an increase of 16 percent in US dollars and 7 percent in local currency.
-- Financial Services: $1,303 million, compared with $1,108 million for the same period last year, an increase of 18% in US dollars and 8% in local currency.
-- Products: $1,611 million, compared with $1,280 million for the year-ago period, an increase of 26 percent in US dollars and 19 percent in local currency.
-- Public Service: $756 million, compared with $638 million for the year-ago period, an increase of 19 percent in US dollars and 13 percent in local currency.
-- Resources: $1,038 million, compared with $850 million for the same period last year, an increase of 22 percent in US dollars and 13 percent in local currency.
Net revenues by geographic region were as follows:
-- Americas: $2,527 million, compared with $2,157 million for the third quarter of fiscal 2007, an increase of 17% in US dollars and 14% in local currency.
-- Europe, Middle East and Africa (EMEA): $3,032 million, compared with $2,468 million for the third quarter of fiscal 2007, an increase of 23 percent in US dollars and 11 percent in local currency.
-- Asia Pacific: $543 million, compared with $457 million for the year-ago period, an increase of 19 percent in US dollars and 6 percent in local currency.
Accenture expects net revenues for the fourth quarter of fiscal 2008 to be in the range of $5.9 to $6.1 billion, based on a foreign-exchange uplift of 7% to 8%.
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