Accenture Profit Climbs 45% Amid Growing Revenue
September 29 2016 - 9:13AM
Dow Jones News
By Anne Steele
Accenture PLC reported profit shot up 45% in the most recent
quarter as revenue continues to grow across the consultancy's
segments.
The Dublin-based company has been shifting its business to
digital, cloud and security services through a number of
acquisitions. On Thursday, Chief Executive Pierre Nanterme said the
company will continue to invest in "high-growth areas across
Accenture -- with a particular focus on digital, cloud and security
services," which accounted for about 40% of Accenture's revenue in
the fiscal year ended in August.
For the current fiscal year, Accenture expects to earn an
unadjusted $5.75 to $5.98 a share, assuming flat foreign exchange
impact. The company expects revenue to grow 5% to 8%, in line with
analyst estimates for 7% growth.
And for the current quarter, the Accenture projected revenue of
$8.4 billion to $8.65 billion, bracketing analyst estimates for
$8.59 billion.
Accenture also declared a semiannual cash dividend of $1.21 a
share, an 11-cent or 10% increase over its previous semiannual
dividend, declared in March.
In the final quarter of its fiscal year, Accenture saw sales
rise across almost all of its business segments. Its products unit
-- its largest -- and health and public services unit saw the
biggest climbs, at 17% and 11%, respectively.
In all for the August quarter, Accenture reported a profit of
$1.07 billion, or $1.68 a share, up from $737.6 million, or $1.15 a
share, a year prior. Excluding a $295 million, or 37 cent a share,
gain on the sale of businesses, adjusted earnings for the quarter
were $1.31 a share.
Analysts polled by Thomson Reuters were looking for adjusted
earnings of $1.30 a share.
Revenue rose 7.2% to $8.97 billion, topping the $8.25 billion to
$8.39 billion the company had projected.
Gross margin edged down to 31.3% from 31.7%.
Shares, up 12% so far this year, rose 3.3% premarket to
$120.50.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
September 29, 2016 08:58 ET (12:58 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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