Accenture reports strong Q3 results

24 Jun 2011

Management consulting, technology services and outsourcing company Accenture has exceeded analysts’ expectations with a 28pc rise in its third-quarter profits.

The company yesterday reported broad revenue growth across all operating groups and geographic regions after gaining market share, and its shares rose 3pc, to $57.35 in after-hours trading.

For the quarter ended 31 May, Accenture posted a profit of $628m, or 93 cents a share, up from $490.6m, or 73 cents a share, a year earlier. Net revenue jumped 21pc, to $6.72bn, while revenue after reimbursements also increased 21pc, to $7.2bn.

Analysts expected a profit of 90 cents on net revenue of $6.43bn.

Operating margin fell to 14.1pc from 14.4pc.

Sales soared 38pc in Asia Pacific and were up 16pc in the Americas. Europe, the Middle East and Africa earned a 21pc increase.

“The continued momentum in our business and the focused execution of our growth strategy enabled us to achieve our highest quarterly revenues ever, of more than $6.7bn,” said Pierre Nanterme, Accenture’s CEO.

“We continue to gain market share, and demand for our services remains robust, as demonstrated by third-quarter bookings in excess of $7bn. Our focus remains on driving sustainable and profitable growth through technology leadership and industry differentiation, and delivering superior value to our clients and shareholders.”

Accenture increased its full-year guidance and issued a strong revenue outlook for the current quarter. For the fourth quarter, Accenture forecasted revenue of $6.4bn-$6.6bn. Analysts predicted $6.18bn.

The company also raised its outlook for the year, now seeing earnings of $3.36 to $3.40 a share on revenue growth of 14-15pc in local currency. Previously, the company projected earnings of $3.22 to $3.30 on revenue growth between 11-14pc.