Accenture Reports First-Quarter Fiscal 2013 Results, With Record Quarterly Revenues And EPS

Accenture (NYSE: ACN) reported financial results for the first quarter of fiscal 2013, ended Nov. 30, 2012, with 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.

Diluted EPS for the quarter were $1.06, compared with $0.96 for the first quarter last year. The $0.10 increase in EPS reflects:

• $0.07 from higher revenue and operating results, including the unfavorable impact of foreign exchange;
• $0.02 from a lower effective tax rate; and
• $0.02 from a lower share count;

partially offset by:

• $0.01 from lower non-operating income.

Gross margin (gross profit as a percentage of net revenues) for the quarter was 32.8 percent, compared with 31.8 percent for the first quarter last year. Selling, general and administrative (SG&A) expenses for the quarter were $1.32 billion, or 18.2 percent of net revenues, compared with $1.27 billion, or approximately 17.9 percent of net revenues, for the first quarter last year.

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