| | Accenture's latest
quarterly results beat
top - and bottom - line
estimates and the
company reiterated its
optimistic outlook for
2006.
Fiscal first-quarter
net income rose to
$214.9m, or 36 cents per
share on an adjusted
basis, from $196.3m, or
32 cents per share on an
adjusted basis, a year
earlier. In October the
company had forecast
earnings per share of 32
cents to 34 cents.
Net revenue climbed
to $4.17bn from $3.73bn
a year earlier.
William D. Green,
Accenture's CEO, said:
"We turned in another
strong performance in
the first quarter,
achieving our highest
quarterly net revenues
ever, with growth in | |
|
| | both US dollars and
local currency across
all five operating
groups and all three
geographic regions.
Given that we recorded
$5.54bn in new bookings,
our highest in seven
quarters, we feel
confident that we are on
the right trajectory to
achieve our revenue goal
for the year."
Analysts were
expecting the company to
report net revenue of
$4.14bn.
But the company's
guidance did not account
for 46.4m shares that
Accenture subsequently
repurchased at a
discount in a Dutch
tender offer.
Altogether, it
purchased 52.2m shares
at a cost of $1.15m
during the quarter,
which contributed to a | |
|
| | penny of upside to
earnings per share.
Accenture said
second-quarter sales
could come in slightly
lighter than currently
expected, but left
full-year sales targets
unchanged and raised
earnings guidance to
reflect its share
repurchase.
The company
reiterated its previous
fiscal year 2006 targets
for revenue growth of 9%
to 12% in local
currency. To reflect a
benefit of 7 cents a
share from the
repurchase and
redemption of 46.4m
shares in the first
quarter, Accenture
raised full-year
earnings guidance to
$1.52 to $1.57 a share
from a prior range of
$1.45 to $1.50 a share. | |
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| |
"The global demand
for consulting and
outsourcing is strong,"
said CEO Green. He noted
"improving market
conditions in terms of
demand and pricing".
And, he added: "We are
feeling more optimistic
about pricing than we
have for a very, very
long time."
Accenture reported
$5.54bn in total new
bookings in the first
quarter, the highest in
seven quarters and
notably higher than the
$4.1bn to $4.6bn
expected by analysts.
The company reiterated
fiscal 2006 bookings
targets of $19bn to
$21bn, although Green
said, "You have to be
pretty optimistic about
the bookings going
forward."
Accenture's | |
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| | consulting net revenue
was $2.58bn in the first
quarter, an increase of
8% in U.S. dollars and
9% in local currency
from a year earlier.
Outsourcing generated
$1.59bn of net revenue,
an increase of 18% in
both U.S. dollars and
local currency from the
same period last year.
Consulting bookings
increased 41% year over
year to $2.78bn and
outsourcing bookings
rose 34% to $2.76bn. COO
Stephen Rohleder said
the numbers provide
evidence of the
company's business
process outsourcing and
applications outsourcing
taking hold. The
company's BPO revenue
rose 25% during the
quarter. | |
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