Accenture (NYSE: ACN) reported financial results for the third quarter of fiscal 2013, ended May 31, 2013, with net revenues of $7.2 billion, an increase of 1 percent in U.S. dollars and 3 percent in local currency over the same period last year, slightly below the company’s guided range of $7.25 billion to $7.50 billion.
Diluted earnings per share were $1.21, including a benefit of $50 million, or $0.07 per share, from a reduction in reorganization liabilities. Excluding this benefit, diluted earnings per share were $1.14. Reorganization liabilities were established in connection with the company’s transition to a corporate structure in 2001.
Operating income for the quarter increased to $1.14 billion, including the benefit of $50 million from the reduction in reorganization liabilities. Excluding the benefit, operating income increased 3 percent, to $1.09 billion, and operating margin expanded approximately 40 basis points, to 15.2 percent.
New bookings for the quarter were $8.3 billion, with consulting bookings of $3.9 billion and outsourcing bookings of $4.4 billion.Pierre Nanterme, Accenture’s chairman and CEO, said, “Our third-quarter results were solid overall, although consulting revenues were below our expectations. We delivered very good profitability, with operating margin expansion and EPS growth reflecting the disciplined management of our business. Quarterly new bookings of $8.3 billion brought us to nearly $25 billion for the first three quarters of the year, which positions us well for the future and demonstrates the relevance of our services and capabilities to the needs of our clients. Our balance sheet remains very strong, with a cash balance of $5.9 billion, and we generated $1.4 billion in free cash flow for the quarter. “We continue to make targeted investments to further differentiate our industry and technology capabilities, to add new skills, and to seize the opportunities in key growth areas. With our focused strategy and diverse portfolio of business, we remain confident in our ability to continue to drive profitable growth and deliver value to our clients and shareholders.”