Menu
Accenture’s “new” tech investments pay off

Accenture’s “new” tech investments pay off

Revenue from digital, cloud and security-related services continues to rise

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

Shares of the company, which also raised its full year adjusted profit forecast, were up about five per cent at US$162.87 in early 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 for the first time.

Accenture CEO Pierre Nanterme said that "the New" has now become the core of company's business.

“I would say all our New babies have the potential to grow successfully for many years," Nanterme said on a conference call.

The Dublin, Ireland-based company has spent more than $3 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 - it has made investments of over US$450 million in acquisitions this year.

Accenture's third-quarter beat was "driven by very strong broad-based revenue growth and healthy operating margin", Cowen & Co analyst Bryan Bergin said.

Evercore ISI analyst David Togut pointed to continued market share gains in North America and Europe, where revenue grew 11 per cent and 22 per cent respectively. Evercore raised its PT on Accenture by US$2 to US$186 after the results.

The company raised its forecast for full year adjusted earnings per share to between US$6.66 and US$6.71, from between US$6.61 to US$6.70.

Accenture forecast current-quarter revenue between US$9.8 billion and US$10.05 billion, the midpoint of which was slightly below average analyst estimate of US$10.01 billion, according to Thomson Reuters.

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

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

The company's revenue rose 15.8 per cent to US$10.84 billion, beating estimates of US$10.04 billion. Revenue before reimbursements, or net revenue, was up 16.3 per cent to US$10.31 billion.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Shailesh Kuber)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Cloudsecuritydigitalaccenture

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments