Accenture Q3 Results Exceed Estimations; Stock Dips At Open, But Recovers
Accenture Plc (NYSE: ACN) announced 11.76 percent increase in profit for the third quarter driven by 8.56 percent growth in the top line. Its earnings, as well as revenue also came in above the Street analysts' predictions.
Accenture reported 11.76 percent increase in net income to $950 million from $850 million while earnings grew 13.7 percent to $1.41 a share from $1.24 a share in the year-ago quarter. The Street expected $1.40 a share.
The company delivered revenue of $8.44 billion, up 8.56 percent from $7.77 billion in the previous year quarter. Analysts predicted the company to generate $8.34 billion revenue. Its new bookings were $9.1 billion, with consulting bookings of $4.9 billion and the remaining accounted for outsourcing bookings of $4.2 billion.
Accenture chairman and CEO, Pierre Nanterme, commented, "We are very pleased with our third-quarter financial results and the continued strong momentum in our business. We delivered 10 percent revenue growth in local currency, and our new bookings of $9.1 billion demonstrate that we are providing highly relevant services to our clients. We expanded operating margin, generated strong free cash flow and returned $1.2 billion in cash to our shareholders."
He continued, "Our excellent results reflect the investments we have made to differentiate Accenture in the marketplace as well as our successful rotation to digital, cloud and security services, which now account for approximately 40 percent of our total revenues. Looking ahead, we are confident in our ability to continue gaining market share, driving profitable growth and delivering value for our clients and shareholders."
Going forward, the company expects $8.25-$8.5 billion revenue for the fourth quarter. The Street expects $8.39 billion.
For the fiscal year 2016, Accenture raised its adjusted earnings to $5.29-$5.33 a share and GAAP earnings of $6.03-$6.07 a share. Analysts are looking for $5.33 a share.
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