Accenture reports strong Q2 results

Accenture reported strong financial results for the second quarter of fiscal 2011, ended Feb. 28, 2011, with net revenues of $6.05 billion, an increase of 17 percent in US dollars and 18 percent in local currency over the same period last year and exceeding the company’s guided range of $5.6 billion to $5.8 billion. Diluted earnings per share were $0.75, an increase of $0.15, or 25 percent, over the same period last year.

Operating income was $772 million, an increase of 19 percent over the same period last year, and operating margin was 12.7 percent.

New bookings for the quarter were $6.98 billion, with consulting bookings of $3.80 billion and outsourcing bookings of $3.18 billion.

Pierre Nanterme, Accenture’s chief executive officer, said: “With quarterly bookings of $7 billion, including our second-highest consulting bookings ever, demand for our services remains strong, and our growth trajectory demonstrates that we continue to execute our business strategy extremely well. We remain focused on growing market share and, as always, on delivering value to our clients as well as our shareholders.”

Accenture expects net revenues for the third quarter of fiscal 2011 to be in the range of $6.3 billion to $6.5 billion.

For fiscal 2011, the company has raised its outlook for net revenue growth to the range of 11 percent to 14 percent from its previous range of 8 percent to 11 percent.

Accenture continues to target new bookings for fiscal 2011 in the range of $25 billion to $28 billion.

Net revenues by operating group were as follows:
• Communications & High Tech: $1.3 billion (Q2 2010: $1.1 billion)

• Financial Services: $1.3 billion (Q2 2010: $1.1 billion)

• Health & Public Service: $965 million, (Q2 2010: $852 million)

• Products: $1.4 billion, (Q2 2010: $1.2 billion)

• Resources: $1.2 billion, (Q2 2010: $929 million)

Net revenues by geographic region for the second quarter were as follows:
• Americas: $2.7 billion, (Q2 2010: $2.2 billion)

• Europe, Middle East and Africa (EMEA): $2.6 billion, (Q2 2010: $2.4 billion)

• Asia Pacific: $787 million, (Q2 2010: $587 million)

Utilization for the quarter was 86 percent, compared with 88 percent for the second quarter of fiscal 2010. Attrition for the second quarter of fiscal 2011 was 14 percent, compared with 15 percent for the second quarter of fiscal 2010.

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