Accenture’s quarterly revenue and profit beat estimates

Firm benefited from plan to boost investments in digital and cloud services

Accenture   forecast current-quarter revenue between  €8.4 billion and  €8.6 billion. Photograph:  Albert Gea/Reuters

Accenture forecast current-quarter revenue between €8.4 billion and €8.6 billion. Photograph: Albert Gea/Reuters

 

Accenture’s third-quarter revenue and profit came in above Wall Street estimates on Thursday as the consulting and outsourcing services provider benefited from its plan to boost investments in digital and cloud services.

Shares of the Dublin, Ireland-based company were up 1.7 per cent at $158 (€136.44) in light volumes in premarket trading.

Revenue from its digital, cloud and security-related services, which the company terms as “the New”, made up about 60 per cent of total revenue.

Accenture has spent more than $3 billion (€2.59 billion) over the last three years on some 70 acquisitions to boost its digital and cloud services in order to compete better with Cognizant and IBM.

Income

The company forecast current-quarter revenue between $9.8 billion (€8.4 billion) and $10.05 billion (€8.6 billion), the midpoint of which was slightly below average analyst estimate of $10.01 billion, according to Thomson Reuters.

Net income attributable to the company rose to $1.04 billion (900 million) in the quarter ended May 31st from $669.5 million (€578 million) a year earlier. It reported earnings of $1.60 per share, compared with $1.05 a year earlier.

Excluding items, the company earned $1.79 per share, above analysts’ estimates of $1.72 per share.

The company’s net revenue rose 15.8 per cent to $10.84 billion (€9.36 billion), beating estimates of $10.04 billion (€8.67 billion).

– Reuters