Global Services – Accenture Raises Outlook, Shares Rise
Posted on March 26, 2011 by Atul Vashistha
Global Services – Accenture Raises Outlook, Shares Rise.
The market is showing strength for global players that are well positioned to go beyond labor arbitrage savings. - Atul Vashistha
Accenture said it expects earnings per share for the full fiscal year to be between $3.22 to $3.30 — above a December forecast of $3.08 to $3.16. The outlook also beat the average analyst forecast of $3.14 per share, according to Thomson Reuters I/B/E/S.
Accenture helps companies cut costs and improve operations through consulting, outsourcing and other services. Clients who had cut back during the recession have recently begun investing again, to position themselves for an economic recovery and to keep up with new technologies like cloud computing.
Chief Executive Pierre Nanterme said demand for the company’s services was strong, with bookings in the second quarter totaling $7 billion. Bookings in the previous quarter had been $6.3 billion.
Quarterly revenue before reimbursements rose to $6.5 billion from $5.5 billion a year earlier. Consulting revenue rose 20 percent year-on-year to $3.5 billion, while outsourcing revenue rose 13 percent to $2.5 billion, the company said.
Quarterly net income rose to 75 cents per share from 60 cents per share a year earlier.
Gross margin, however, fell to 31.7 percent from 32.7 percent a year earlier. The company blamed higher compensation as well as costs of hiring and training new employees to meet higher demand.
Shares in Accenture rose to $54.80 following the report, after closing at $51.96 on the New York Stock Exchange, up 2.5 percent during the regular session.
Source:Reuters
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