Accenture Plc quarterly profit tops analysts’ estimates

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Accenture Plc, the world’s second-biggest technology-consulting company, announced that its quarterly profit beat analysts’ forecast as spending on outsourcing picked up.

The company increased its per-share earnings forecast for the full year from $4.44 to $4.56, higher than its October estimate of $4.42 to $4.54, amid more positive foreign-exchange impact estimate. Accenture maintained its revenue forecast for the full year.

Bookings for consulting jumped as customers increased investments in projects, with Europe emerging from its debt crisis and the U.S. resolving its budget standoff. Clients are looking for assistance on using newer technology such as cloud computing and large-data analysis.

The company estimates revenue for the current quarter to be between $6.95bn and $7.25bn. Analysts predict revenue in the second quarter to be at $7.25bn.

For the quarter ended Nov. 30, Accenture’s earnings reached $751.9mn, or $1.15 a share, from $698.8mn, or $1.06 a share. Analysts predicted per-share earnings of $1.09.

Accenture’s net revenue climbed 1.9 percent to $7.36bn, higher than the company’s estimates of $7bn to $7.25bn range. Net revenue for its consulting business dropped 1 percent to $3.94bn, while net revenue for outsourcing climbed 5 percent to $3.42bn.

The consulting company competes for contracts worldwide with technology firms IBM and Hewlett-Packard Co., and has seen its earnings grow in more than two years and its revenue for its outsourcing business grow strongly.

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