Technology outsourcing and consultancy company Accenture Plc (ACN: Quote), Thursday reported an increase in third-quarter profit, as revenues grew at all operating groups and geographic regions, especially in outsourcing business.
Accenture's profit for the quarter came in ahead of analysts' expectations, however, revenues missed estimates.
Moving ahead, Accenture lowered its earnings guidance for the full-year 2012, impacted by the revision of currency translation effects.
Outsourcing net revenues for the quarter rose 16 percent, while consulting revenues remained flat in US dollars and increased of 3 percent based in local currency.
By operating group, revenues from communications, media and technology business gained 4 percent from last year. Financial services, and Health & Public services units' revenues grew 4 percent and 12 percent, respectively. Revenue from products rose 8 percent, while resources increased 5 percent.
Geographically, Asia Pacific led the growth with a 18 percent increase, followed by Americas at 10 percent. Europe, Middle East and Africa decreased 1 percent in US dollars and improved 4 percent on local currency.
Accenture said its third-quarter net revenues grew 6 percent to $7.15 billion from $6.72 billion last year. On local currency basis, revenues grew 9 percent. Eighteen analysts on a consensus estimated revenues of $7.16 billion for the quarter.
Dublin, Ireland-based Accenture's third-quarter profit improved to $689.2 million or $1.03 per share from $628.0 million or $0.93 per share last year. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.
Looking forward to the fourth quarter, the company expects net revenues in a range of $6.60 billion to $6.85 billion. Analysts currently estimate revenues of $6.98 billion for the quarter.
Meanwhile, Accenture noted that its outlook for the full-year 2012 now assumes a foreign-exchange impact of negative 2 percent, while its previous estimate was of negative impact of 1 percent.
As a result of the foreign exchange impact revision, Accenture lowered its earnings guidance to a range of $3.80 to $3.84 per share, from previously outlook of $3.82 to $3.90 per share.
For the fiscal year 2012, the company continues to expect revenue growth to be in the range of 10 percent to 12 percent in local currency.
Analysts currently expect earnings of $3.87 per share on revenues of $28.03 billion for fiscal year 2012.
Accenture expects full-year new bookings, which is an indicator of future sales, to be toward the upper end of its guidance range of $28 billion to $31 billion.
ACN closed Thursday's trading at $56.63, up $0.76 or 1.36%, on a volume of 5 million shares on the NYSE. In after-hours, the stock gained $1.48 or 2.61%.
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by RTT Staff Writer
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