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Accenture plc First Quarter Earnings
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ACN
Accenture plc (NYSE:ACN) announced its results for the most recent quarter on December 19, 2012. Accenture is a global management consulting, technology services, and outsourcing company.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Accenture plc's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $1.06 per share versus the $1.04 per share estimate and revenues of $7.67 billion versus the $7.16 billion estimate. EPS rose 10.4% while revenue climbed 1% from the same period last year. Accenture plc's revenue has grown during each of the past four quarters on a year-over-year basis. Accenture plc's net income for the first quarter was $698.8 million, a 8.8% increase from last year.
Management Quote: Pierre Nanterme, Accenture's chief executive officer, said, "We are pleased with our first-quarter results, in particular our ability to drive profitable growth despite the continued volatility in the global economic environment. Revenue growth, which included a strong 13 percent local-currency increase in outsourcing, was in line with our expectations. We also delivered very good profitability, reflecting our disciplined management of the business. Looking ahead, we remain focused on the successful execution of our growth strategy and are investing to further differentiate our industry and technology capabilities, as well as to expand our geographic footprint in key growth markets. We are raising our business outlook for both EPS and operating margin for the full fiscal year and remain well-positioned to continue delivering value for our clients and shareholders."
A Look Back: Gross margins increased 1.2 percentage points to 30.9%. The growth seemed to be driven by increased revenue, as the figure rose 1% from the year-earlier quarter and costs fell 0.7%.
Net income has increased 12.2% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 28% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter performance are higher than they were 90 days ago. Over the past three months, the average estimate for the second quarter has risen to 97 cents per share from 95 cents. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $4.27 per share, a rise from $4.14 90 days ago.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Accenture plc's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $1.06 per share versus the $1.04 per share estimate and revenues of $7.67 billion versus the $7.16 billion estimate. EPS rose 10.4% while revenue climbed 1% from the same period last year. Accenture plc's revenue has grown during each of the past four quarters on a year-over-year basis. Accenture plc's net income for the first quarter was $698.8 million, a 8.8% increase from last year.
Management Quote: Pierre Nanterme, Accenture's chief executive officer, said, "We are pleased with our first-quarter results, in particular our ability to drive profitable growth despite the continued volatility in the global economic environment. Revenue growth, which included a strong 13 percent local-currency increase in outsourcing, was in line with our expectations. We also delivered very good profitability, reflecting our disciplined management of the business. Looking ahead, we remain focused on the successful execution of our growth strategy and are investing to further differentiate our industry and technology capabilities, as well as to expand our geographic footprint in key growth markets. We are raising our business outlook for both EPS and operating margin for the full fiscal year and remain well-positioned to continue delivering value for our clients and shareholders."
A Look Back: Gross margins increased 1.2 percentage points to 30.9%. The growth seemed to be driven by increased revenue, as the figure rose 1% from the year-earlier quarter and costs fell 0.7%.
Net income has increased 12.2% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 28% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter performance are higher than they were 90 days ago. Over the past three months, the average estimate for the second quarter has risen to 97 cents per share from 95 cents. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $4.27 per share, a rise from $4.14 90 days ago.
by
Investopedia Staff
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