Accenture posts strong quarter results

SOURCE: DataMonitor
DATE: September 29th, 2008

Mohit Soapbox:
Given the grim news everywhere, Accenture seem to show a positive signal. The company has posted strong results and continues to grow it’s consulting and outsourcing revenues and grow in areas outside of the US. A key reason for this is that Accenture has been able to tap into it’s C suite level relationships and existing customer base and offers people a comprehensive range of solutions.

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Management consulting services provider Accenture has reported a 37% increase in net income to $434.82m for the fourth quarter 2008, compared to a net income of $316.79m in the year-ago quarter, on revenue up 17% to $6 billion. For the year, it reported a 36% increase in net income to $1.69 billion, on revenue up 19% to $23.39 billion.
The company said consulting revenue grew 19% to $3.61 billion, while outsourcing revenue grew 15% to $2.39 billion during the quarter. Geographically, Americas revenue grew 17% to $2.55 billion, EMEA revenue grew 17% to $2.84 billion, and Asia Pacific revenue grew 24% to $603.16m.

During the quarter, operating income grew 22% to $785m, while diluted EPS grew 35% to $0.67. New bookings increased to $7.67 billion. It also reported operating cash flow of $1.03 billion and repurchased 15.2 million shares.

William D. Green, chairman and chief executive at Accenture, said: “We’re very pleased with our strong fourth-quarter and full-year performance, which demonstrates our ability to deliver outstanding results, even in challenging economic conditions. We generated significant cash flow, we have no debt, and our balance sheet is rock-solid. We continue to return cash to shareholders through our fourth annual cash dividend and the repurchase of $2.3 billion of our shares during the year.

Looking ahead, for the first quarter 2009, the company expects revenue between $6.15 billion and $6.35 billion. For fiscal 2009, it expects revenue growth between 9% and 12% and diluted EPS between $2.85 and $2.93.

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