Accenture Reports Strong Third-Quarter Fiscal 2014 Results
— Revenues increase 7% in both U.S. dollars and local currency to $7.74 billion —
— EPS are $1.26, up 4% from $1.21; up 11% from adjusted EPS of $1.14 in the third quarter last year —
— Operating income increases 3% to $1.18 billion, with operating margin of 15.2% —
— New bookings are $8.8 billion, with consulting bookings of $4.3 billion and outsourcing bookings of $4.5 billion —
— Company updates business outlook for fiscal 2014 —
NEW YORK; June 26, 2014 — Accenture (NYSE: ACN) reported strong financial results for the third quarter of fiscal 2014, ended May 31, 2014, with net revenues of $7.74 billion, an increase of 7 percent in both U.S. dollars and local currency over the same period last year, above the company’s guided range of $7.40 billion to $7.65 billion.
Diluted earnings per share were $1.26, compared with $1.21 for the third quarter last year, which included a benefit of $50 million, or $0.07 per share, from a reduction in reorganization liabilities. Excluding this benefit, diluted EPS for the third quarter last year were $1.14. Diluted EPS for the third quarter of fiscal 2014 increased 11 percent from adjusted EPS for the third quarter last year.
Operating income for the quarter was $1.18 billion, or 15.2 percent of net revenues, compared with $1.14 billion, or 15.9 percent of net revenues, for the third quarter last year, which included the benefit of $50 million from the reduction in reorganization liabilities. Excluding this benefit, operating income for the third quarter of fiscal 2013 was $1.09 billion, or 15.2 percent of net revenues.
New bookings for the quarter were $8.8 billion, with consulting bookings of $4.3 billion and outsourcing bookings of $4.5 billion.
Pierre Nanterme, Accenture’s chairman and CEO, said, “We are very pleased with our third-quarter financial results. We delivered strong revenue growth, which was broad-based across the different dimensions of our business, and earnings per share of $1.26, up 11 percent. New bookings of $8.8 billion bring us to $27.6 billion for the first three quarters of the year, and demonstrate that our services continue to be highly relevant to our clients. We generated solid free cash flow and returned $1.1 billion in cash to our shareholders.
“These results clearly demonstrate that we are successfully executing our growth strategy. We are leveraging our unique positioning at the intersection of business and technology, capturing new opportunities in key growth areas—especially digital—and investing to further differentiate our capabilities. At the same time, we are maintaining a disciplined management approach to continue enhancing our competitiveness. We remain confident in our ability to continue driving profitable growth and delivering value for our clients and shareholders.”
The following information was filed by Accenture Sca (SCA) on Thursday, June 26, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.