Accenture PLC (NYSE: CAN)
Accenture investors had a great day on Thursday after the company delivered stellar third quarter earnings. The Dublin-based company saw its shares rise $9, or 5% to $164 in the regular trading session.
Profit and revenue easily surpassed Wall Street estimates, with security, cloud, and security-related services accounting for 60% of total sales.
CAN Earnings & Outlook
The company posted a net income of $1.04 billion, or $1.60 per share for the quarter to May 31. In the same period last year, the professional services company reported a net income of $669.5 million, or $1.05 per share.
Excluding non-recurring items, adjusted earnings per share came in at $1.79 per share, and above FactSet consensus of $1.72.
Total revenue was $10.84 billion, up 16% and ahead of analyst consensus estimate of $10.04 billion.
For the full year, Accenture expects revenue to grow between 9.5% to 10%, ahead of its previous guidance of 7% to 9%.
The company also lifted its adjusted earnings per share guidance to $6.66 to $6.71, from the earlier $6.61 to $6.70. Analysts expect it to post EPS of $6.69.
Accenture CEO Comments
“We delivered outstanding financial results for the third quarter. We are clearly benefiting from our unique position as the end-to-end leader operating at scale in the New – digital, cloud and security services, which now account for approximately 60 percent of total revenues. We continue to invest to build highly differentiated capabilities and capture new growth opportunities. These investments and our innovation-led approach position us very well to continue gaining market share and delivering value for our clients and shareholders,” said, Pierre Nanterme, Accenture chairman and chief executive officer.
Accenture PLC Company Profile
Accenture engages in the provision of consulting, outsourcing, and technology services internationally.
The company operates under five segments namely; Communications, Media & Technology; Resources; Financial Services; Health & Public Service; and Products segments.
The Communications, Media & Technology segment offers professional services that allow clients to deliver and accelerate digital transformation.
This segment also helps clients to enhance their business results through media, communications, and high tech solutions.
The Financial Services division provides services that handle regulatory issues, profitability pressures, and industry consolidation. It also serves clients in insurance, capital markets, and banking industries.
The company’s Health & Public Service division offers research-based offerings and insights, including digital solutions and consulting services to enable clients deliver health, economic, and social outcomes.
It also serves healthcare providers and payers, as well as public service organizations, government agencies and departments, non-profit organizations, and educational institutions.
The Products segment helps clients to improve their performance in marketing, distribution, development, research, sales, and business functions such as supply chain, finance, human resources, and procurement.
It also serves clients in retail, consumer goods, travel services, automotive, retail industries, and medical technology firms.
Under the Resources segment, the company enables clients to implement and develop strategies, integrate digital technologies, improve operations, and manage complex change initiatives.
It also serves clients in mining and metal, chemicals, forest products, and energy industries. The company was founded in 1989 and its headquarters are located in Dublin, Ireland. –Reuters