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Accenture reports record Q1, despite consulting, EMEA blips

Accenture 2012

New York: Accenture has reported record first quarter 2013 results, despite a dip in consulting revenues and a downturn in its EMEA operations.

  • Revenues increase 2% in U.S. dollars and 5% in local currency, to $7.2 billion
  • EPS up 10%
  • Operating income increases 7%, to $1.05 billion, with operating margin of 14.5%
  • New bookings are $7.5 billion, with consulting bookings of $4.2 billion and outsourcing bookings of $3.3 billion
  • Raises outlook for full-year

Accenture's financial results for the first quarter of fiscal 2013, to November 30, 2012, show record net revenues of $7.2 billion, an increase of 2 percent in U.S. dollars and 5 percent in local currency over the same period last year. Diluted earnings per share were $1.06, an increase of $0.10, or 10 percent, over the same period last year.

Operating income was $1.05 billion, an increase of 7 percent over the same period last year, and operating margin was 14.5 percent, a year-over-year expansion of more than 60 basis points.

New bookings for the quarter were $7.5 billion, with consulting bookings of $4.2 billion and outsourcing bookings of $3.3 billion.

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."

Financial Review

Revenues before reimbursements ("net revenues") for the first quarter of fiscal 2013 were $7.22 billion, compared with $7.07 billion for the first quarter of fiscal 2012, an increase of 2 percent in U.S. dollars and 5 percent in local currency and within the company's guided range of $7.1 billion to $7.35 billion. The foreign-exchange impact of approximately negative 3 percent was consistent with the assumption provided in the company's fourth-quarter earnings release.

  • Consulting net revenues for the quarter were $3.96 billion, a decrease of 3 percent in U.S. dollars and flat in local currency compared with the first quarter of fiscal 2012.
  • Outsourcing net revenues were $3.26 billion, an increase of 9 percent in U.S. dollars and 13 percent in local currency over the first quarter of fiscal 2012.

New Bookings

New bookings for the first quarter were $7.5 billion and reflect a negative 2 percent foreign-currency impact compared with new bookings in the first quarter last year.

  • Consulting new bookings were $4.2 billion, or 56 percent of total new bookings.
  • Outsourcing new bookings were $3.3 billion, or 44 percent of total new bookings.

Net Revenues by Operating Group

Net revenues by operating group were as follows:

  • Communications, Media & Technology: $1.46 billion, compared with $1.54 billion for the first quarter of fiscal 2012, a decrease of 5 percent in U.S. dollars and 1 percent in local currency.
  • Financial Services: $1.56 billion, compared with $1.48 billion for the first quarter of fiscal 2012, an increase of 5 percent in U.S. dollars and 9 percent in local currency.
  • Health & Public Service: $1.17 billion, compared with $1.05 billion for the first quarter of fiscal 2012, an increase of 11 percent in U.S. dollars and 13 percent in local currency.
  • Products: $1.70 billion, compared with $1.67 billion for the first quarter of fiscal 2012, an increase of 2 percent in U.S. dollars and 5 percent in local currency.
  • Resources: $1.32 billion, compared with $1.33 billion for the first quarter of fiscal 2012, flat in U.S. dollars and an increase of 3 percent in local currency.

Net Revenues by Geographic Region

Net revenues by geographic region were as follows:

  • Americas: $3.33 billion, compared with $3.07 billion for the first quarter of fiscal 2012, an increase of 8 percent in U.S. dollars and 10 percent in local currency.
  • Europe, Middle East and Africa (EMEA): $2.82 billion, compared with $3.01 billion for the first quarter of fiscal 2012, a decrease of 6 percent in U.S. dollars and flat in local currency.
  • Asia Pacific: $1.06 billion, compared with $991 million for the first quarter of fiscal 2012, an increase of 7 percent in U.S. dollars and 8 percent in local currency.

Business Outlook

Second Quarter Fiscal 2013

Accenture expects net revenues for the second quarter of fiscal 2013 to be in the range of $6.9 billion to $7.15 billion. This range assumes a foreign-exchange impact of negative 1 percent compared with the second quarter of fiscal 2012.

Full Fiscal Year 2013

For fiscal 2013, the company continues to expect net revenue growth to be in the range of 5 percent to 8 percent in local currency.

Accenture's business outlook for the full 2013 fiscal year continues to assume a foreign-exchange impact of negative 1 percent compared with fiscal 2012.

The company has raised its outlook for diluted EPS for fiscal 2013 to the range of $4.24 to $4.32 from its previously guided range of $4.22 to $4.30.

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