Accenture (NYSE:ACN) reported financial results for the second quarter of fiscal 2014, ended Feb. 28, 2014, with net revenues of $7.13 billion, an increase of 1 percent in U.S. dollars and 3 percent in local currency over the same period last year, within the company’s guided range.
Diluted earnings per share were $1.03, compared with $1.65 for the second quarter last year, which included benefits of $243 million, or $0.34 per share, from final determinations of prior-year U.S. federal tax liabilities and $224 million, or $0.31 per share, from a reduction in reorganization liabilities. Excluding these benefits, diluted EPS for the second quarter last year were $1.00.
Operating income for the quarter was $951 million, or 13.3 percent of net revenues, compared with $1.16 billion, or 16.5 percent of net revenues, for the second quarter last year, which included the benefit of $224 million from the reduction in reorganization liabilities. Excluding the benefit, operating income for the second quarter of fiscal 2013 was $940 million, or 13.3 percent of net revenues.
New bookings for the quarter were a record $10.1 billion, with consulting bookings of $4.6 billion and outsourcing bookings of $5.5 billion.Pierre Nanterme, Accenture’s chairman and CEO, said, “In the second quarter, we delivered revenues within our guided range, reported solid earnings per share and returned substantial cash to shareholders. We continued to see very strong demand for our services, with $10.1 billion in new bookings, including record consulting and record outsourcing bookings. “Looking ahead, we are well-positioned to deliver our business outlook for the year, given our outstanding year-to-date bookings of $18.8 billion as well as the activity and client interest we see in the marketplace. We remain focused on the successful execution of our growth strategy, and are confident in our ability to deliver value to our clients and our shareholders.” Financial Review Revenues before reimbursements (“net revenues”) for the second quarter of fiscal 2014 were $7.13 billion, compared with $7.06 billion for the second quarter of fiscal 2013, an increase of 1 percent in U.S. dollars and 3 percent in local currency, and within the company’s guided range of $6.95 billion to $7.25 billion. The foreign-exchange impact for the quarter was approximately negative 1.5 percent, consistent with the assumption provided in the company’s first-quarter earnings release.
- Consulting net revenues for the quarter were $3.70 billion, a decrease of 1 percent in U.S. dollars and flat in local currency compared with the second quarter of fiscal 2013.
- Outsourcing net revenues were $3.43 billion, an increase of 4 percent in U.S. dollars and 5 percent in local currency over the second quarter of fiscal 2013.
- $0.01 from higher revenue and operating results;
- $0.01 from a lower effective tax rate excluding the impact last year of final determinations of prior-year tax liabilities and the reduction in reorganization liabilities; and
- $0.03 from a lower share count
- $0.02 from lower non-operating income.