Accenture (ACN) Q3 2012 Earnings Call June 28, 2012 4:30 pm ET Executives KC McClure Pierre Nanterme - Chief Executive Officer and Director Pamela J. Craig - Chief Financial Officer Analysts Darrin D. Peller - Barclays Capital, Research Division Tien-Tsin T. Huang - JP Morgan Chase & Co, Research Division Rod Bourgeois - Sanford C. Bernstein & Co., LLC., Research Division Bryan Keane - Deutsche Bank AG, Research Division Julio C. Quinteros - Goldman Sachs Group Inc., Research Division Joseph D. Foresi - Janney Montgomery Scott LLC, Research Division David Grossman - Stifel, Nicolaus & Co., Inc., Research Division Keith F. Bachman - BMO Capital Markets U.S. Edward S. Caso - Wells Fargo Securities, LLC, Research Division Ashwin Shirvaikar - Citigroup Inc, Research Division Presentation Operator
As a reminder, when we discuss revenues during today's call, we're talking about revenues before reimbursement, or net revenues. Some of the matters we'll discuss on this call are forward-looking, including the business outlook. You should keep in mind that these forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements and that such statements are not a guarantee of our future performance.Such risks and uncertainties include, but are not limited to, general economic conditions and those factors set forth in today's news release and discussed under the Risk Factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q and other SEC filings. During our call today, we will reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include reconciliations of those measures, where appropriate, to GAAP in our news release or on the Investor Relations section of our website at accenture.com. As always, Accenture assumes no obligation to update the information presented on this conference call. Now let me turn the call over to Pierre. Pierre Nanterme Thank you, KC, and thanks everyone for joining us today. We are pleased with our results for the third quarter, which demonstrate that our strategy and the diversity of our business continue to differentiate Accenture in the marketplace and enable us to drive profitable growth. Here are a few highlights. We delivered new bookings of $7.3 billion, bringing us to $23 billion for the first 3 quarters of the year. Revenues were $7.2 billion, up 9% in local currency, with growth across all 5 operating groups and all 3 geographic regions and outstanding revenue growth in outsourcing. We delivered earnings per share of $1.03, an increase of 11%. We increased operating income 12% to $1.1 billion and expanded operating margin to 14.8%.
We continue to have a very strong balance sheet, ending the quarter with a cash balance of $5.6 billion. And we returned more than $1.1 billion in cash to shareholders through share repurchases and the payment of our semi-annual cash dividend. Given how we see our business shaping up for the year, we are confirming our outlook for revenue growth of 10% to 12% for the year.Now let me hand over to Pam who will review the numbers in greater detail. Pam, over to you. Pamela J. Craig Thank you, Pierre, and thanks to all of you for listening today. I am pleased to give you some details on Accenture's fiscal year 2012 third quarter financial results. We delivered solid bookings, tracking to our full year outlook and revenues right at the midpoint of the Q3 range we provided in March. Revenue growth was driven by continued strength in outsourcing and demand that spans our global operating groups for our diverse mix of service offerings. We also delivered overall margin expansion and continue to drive strong cash flow. We achieved double-digit EPS growth for the quarter, reflecting the profitable growth in our business. And we continue to have a strong balance sheet. Now let's get to the numbers. Unless I state otherwise, all figures are U.S. GAAP except the items that are not part of the financial statements or that are calculations. New bookings for the quarter were $7.29 billion and reflect a negative 4% foreign exchange impact compared with new bookings in the third quarter last year. Consulting bookings were $4.05 billion, and outsourcing bookings were $3.24 billion. And as a reminder, our outsourcing bookings in particular can be lumpy from quarter to quarter. Read the rest of this transcript for free on seekingalpha.com