-- Revenues are $15.7 billion, an increase of
5% in U.S. dollars and 15% in local currency --
-- Operating margin expands 20 basis points to
16.5%, with operating income increasing 7% to $2.59 billion --
-- EPS are $3.08, an 11% increase from $2.78
for the first quarter of fiscal 2022 --
-- New bookings are $16.2 billion across
consulting and managed services with both at $8.1 billion --
-- Company declares quarterly cash dividend of
$1.12 per share, up 15% from a year ago --
-- Accenture updates business outlook for
fiscal 2023; raises EPS to $11.20 to $11.52; continues to expect
revenue growth of 8% to 11% in local currency; and now expects
foreign-exchange impact of negative 5% --
Accenture (NYSE: ACN) reported financial results for the first
quarter of fiscal 2023, ended November 30, 2022, with revenues of
$15.7 billion, an increase of 5% in U.S. dollars and 15% in local
currency over the same period last year.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221216005055/en/
Q1 FY2023 Earnings Infographic (Graphic:
Business Wire)
Diluted earnings per share were $3.08, an 11% increase from
$2.78 for the first quarter last year.
Operating income was $2.59 billion, a 7% increase over the same
period last year, and operating margin was 16.5%, an expansion of
20 basis points. Operating cash flow was $495 million and free cash
flow was $397 million.
New bookings for the quarter were $16.2 billion, with bookings
of $8.1 billion for both consulting and managed services
(previously referred to as outsourcing).
Julie Sweet, chair and CEO, Accenture, said, “Our strong first
quarter results reflect our laser focus on creating value for our
clients, as well as the significant investments in our business and
capabilities we make year in and year out to meet the evolving
needs of our clients. Today, all strategies lead to technology, and
Accenture’s depth and breadth, leading ecosystem relationships and
continuous innovation are enabling clients to digitize faster,
build greater resiliency and optimize costs. Thanks to our
extraordinary people, we continue to deliver 360° value for all our
stakeholders, and are pleased to share our goals, progress and
performance in our newly enhanced 360° Value Reporting
Experience.”
Financial Review
Revenues for the first quarter of fiscal 2023 were $15.75
billion, compared with $14.97 billion for the first quarter of
fiscal 2022, an increase of 5% in U.S. dollars and 15% in local
currency.
Revenues for the quarter reflect a foreign-exchange impact of
approximately negative 9.5% compared with the negative 8.5% impact
previously assumed. Adjusting for the actual foreign-exchange
impact, the company’s guided range for quarterly revenues was
approximately $15.05 billion to $15.60 billion. Accenture’s
first-quarter fiscal 2023 revenues were approximately $150 million
above this adjusted range.
- Consulting revenues for the quarter were $8.44 billion, an
increase of 1% in U.S. dollars and 10% in local currency compared
with the first quarter of fiscal 2022.
- Managed Services revenues were $7.30 billion, an increase of
11% in U.S. dollars and 20% local currency compared with the first
quarter of fiscal 2022.
Diluted EPS for the quarter were $3.08, an 11% increase from
$2.78 for the first quarter last year. The $0.30 increase in EPS
reflects:
- a $0.19 increase from higher revenue and operating results;
and
- a $0.04 increase from non-operating income; and
- a $0.04 increase from a lower effective tax rate; and
- a $0.03 increase from a lower share count.
Gross margin (gross profit as a percentage of revenues) for the
quarter was 32.9%, flat compared to 32.9% in the first quarter last
year. Selling, general and administrative (SG&A) expenses for
the quarter were $2.59 billion, or 16.5% of revenues, compared with
$2.48 billion, or 16.6% of revenues, for the first quarter last
year.
Operating income for the quarter increased 7%, to $2.59 billion,
or 16.5% of revenues, compared with $2.43 billion, or 16.3% of
revenues, for the first quarter of fiscal 2022.
The company’s effective tax rate for the quarter was 23.3%,
compared with 24.4% for the first quarter last year.
Net income for the quarter was $2.00 billion, compared with
$1.82 billion for the first quarter last year.
Operating cash flow for the quarter was $495 million, and
property and equipment additions were $99 million. Free cash flow,
defined as operating cash flow net of property and equipment
additions, was $397 million. For the same period last year,
operating cash flow was $531 million; property and equipment
additions were $182 million; and free cash flow was $349
million.
Days services outstanding, or DSOs, were 48 days at Nov. 30,
2022, compared with 43 days at Aug. 31, 2022 and 42 days at Nov.
30, 2021.
Accenture’s total cash balance at Nov. 30, 2022 was $5.9
billion, compared with $7.9 billion at Aug. 31, 2022.
New Bookings
New bookings for the first quarter were $16.22 billion, a 3%
decrease in U.S. dollars and a 6% increase in local currency from
the first quarter last year.
- Consulting new bookings were $8.11 billion, or 50% of total new
bookings.
- Managed Services new bookings were $8.11 billion, or 50% of
total new bookings.
Revenues by Geographic Market
Revenues by geographic market were as follows:
- North America: $7.62 billion, an increase of 10% in U.S.
dollars and 11% in local currency compared with the first quarter
of fiscal 2022.
- Europe: $5.07 billion, a decrease of 0.5% in U.S. dollars and
an increase of 17% in local currency compared with the first
quarter of fiscal 2022.
- Growth Markets: $3.05 billion, an increase of 3% in U.S.
dollars and 19% in local currency compared with the first quarter
of fiscal 2022.
Revenues by Industry Group
Revenues by industry group were as follows:
- Communications, Media & Technology: $2.98 billion, an
increase of 3% in U.S. dollars and 11% in local currency compared
with the first quarter of fiscal 2022.
- Financial Services: $2.96 billion, an increase of 2% in U.S.
dollars and 13% in local currency compared with the first quarter
of fiscal 2022.
- Health & Public Service: $3.00 billion, an increase of 10%
in U.S. dollars and 15% in local currency compared with the first
quarter of fiscal 2022.
- Products: $4.67 billion, an increase of 4% in U.S. dollars and
15% in local currency compared with the first quarter of fiscal
2022.
- Resources: $2.14 billion, an increase of 10% in U.S. dollars
and 21% in local currency compared with the first quarter of fiscal
2022.
Returning Cash to
Shareholders
Accenture continues to return cash to shareholders through cash
dividends and share repurchases.
Dividend
On Nov. 15, 2022, a quarterly cash dividend of $1.12 per share
was paid to shareholders of record at the close of business on Oct.
13, 2022. These cash dividend payments totaled $706 million.
Accenture plc has declared another quarterly cash dividend of
$1.12 per share for shareholders of record at the close of business
on Jan. 10, 2023. This dividend, which is payable on Feb. 15, 2023,
represents a 15% increase over the quarterly dividend rate of $0.97
per share in fiscal 2022.
Share Repurchase Activity
During the first quarter of fiscal 2023, Accenture repurchased
or redeemed 5.2 million shares for a total of $1.4 billion,
including approximately 4.5 million shares repurchased in the open
market.
Accenture’s total remaining share repurchase authority at Nov.
30, 2022 was approximately $4.9 billion.
At Nov. 30, 2022, Accenture had approximately 630 million total
shares outstanding.
Business Outlook
Second Quarter Fiscal 2023
Accenture expects revenues for the second quarter of fiscal 2023
to be in the range of $15.20 billion to $15.75 billion, an increase
of 6% to 10% in local currency, reflecting the company’s assumption
of an approximately negative 5% foreign-exchange impact compared
with the second quarter of fiscal 2022.
Fiscal Year 2023
Accenture’s business outlook for the full 2023 fiscal year now
assumes that the foreign-exchange impact on its results in U.S.
dollars will be approximately negative 5% compared with fiscal
2022; the company previously expected a negative 6%
foreign-exchange impact.
For fiscal 2023, the company continues to expect revenue growth
to be in the range of 8% to 11% in local currency.
Accenture continues to expect operating margin for the full 2023
fiscal year to be in the range of 15.3% to 15.5%, an expansion of
10 to 30 basis points from fiscal 2022.
The company continues to expect its annual effective tax rate to
be in the range of 23% to 25%.
The company now expects diluted EPS to be in the range of $11.20
to $11.52, an increase of 5% to 8% over FY22 diluted EPS. The
company previously expected diluted EPS to be in the range of
$11.09 to $11.41.
For fiscal 2023, the company continues to expect operating cash
flow to be in the range of $8.5 billion to $9.0 billion; property
and equipment additions to be $800 million; and free cash flow to
be in the range of $7.7 billion to $8.2 billion.
The company continues to expect to return at least $7.1 billion
in cash to shareholders through dividends and share
repurchases.
360° Value Reporting
Accenture’s goal is to create 360° value for our clients,
people, shareholders, partners, and communities. Our reporting
captures how we deliver unique value across six vital dimensions
and offers a comprehensive view of our financial and environmental,
social and governance (ESG) measures, and our goals, progress and
performance for each. We are pleased to publish our first full 360°
Value Report for fiscal 2022 in tandem with our enhanced, online
360° Value Reporting Experience, which now provides customizable
reports. To access please visit the Accenture 360° Value Reporting
Experience at www.accenture.com/reportingexperience.
Conference Call and Webcast
Details
Accenture will host a conference call at 8:00 a.m. EST today to
discuss its first-quarter fiscal 2023 financial results. To
participate, please dial +1 (877) 692-8955 [+1 (234) 720-6979
outside the United States, Puerto Rico and Canada] and enter access
code 9024690 approximately 15 minutes before the scheduled start of
the call. The conference call will also be accessible live on the
Investor Relations section of the Accenture website at
www.accenture.com.
A replay of the conference call will be available at
www.accenture.com beginning at 11:00 a.m. EST today, December 16,
and continuing through March 22, 2023. The replay will also be
available via telephone by dialing +1 (866) 207-1041 [+1 (402)
970-0847 outside the United States, Puerto Rico and Canada] and
entering access code 2975215 from 11:00 a.m. EST today, December
16, through Wednesday, March 22, 2023.
About Accenture
Accenture is a leading global professional services company that
helps the world’s leading businesses, governments and other
organizations build their digital core, optimize their operations,
accelerate revenue growth and enhance citizen services—creating
tangible value at speed and scale. We are a talent and innovation
led company with 738,000 people serving clients in more than 120
countries. Technology is at the core of change today, and we are
one of the world’s leaders in helping drive that change, with
strong ecosystem relationships. We combine our strength in
technology with unmatched industry experience, functional expertise
and global delivery capability. We are uniquely able to deliver
tangible outcomes because of our broad range of services, solutions
and assets across Strategy & Consulting, Technology,
Operations, Industry X and Accenture Song. These capabilities,
together with our culture of shared success and commitment to
creating 360° value, enable us to help our clients succeed and
build trusted, lasting relationships. We measure our success by the
360° value we create for our clients, each other, our shareholders,
partners and communities. Visit us at www.accenture.com.
Non-GAAP Financial
Information
This news release includes certain non-GAAP financial
information as defined by Securities and Exchange Commission
Regulation G. Pursuant to the requirements of this regulation,
reconciliations of this non-GAAP financial information to
Accenture’s financial statements as prepared under generally
accepted accounting principles (GAAP) are included in this press
release. Financial results “in local currency” are calculated by
restating current-period activity into U.S. dollars using the
comparable prior-year period’s foreign-currency exchange rates.
Accenture’s management believes providing investors with this
information gives additional insights into Accenture’s results of
operations. While Accenture’s management believes that the non-GAAP
financial measures herein are useful in evaluating Accenture’s
operations, this information should be considered as supplemental
in nature and not as a substitute for the related financial
information prepared in accordance with GAAP. Accenture provides
full-year revenue guidance on a local-currency basis and not in
U.S. dollars because the impact of foreign exchange rate
fluctuations could vary significantly from the company’s stated
assumptions.
Forward-Looking
Statements
Except for the historical information and discussions contained
herein, statements in this news release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as “may,”
“will,” “should,” “likely,” “anticipates,” “aspires,” “expects,”
“intends,” “plans,” “projects,” “believes,” “estimates,”
“positioned,” “outlook,” “goal,” “target,” and similar expressions
are used to identify these forward-looking statements. These
statements are not guarantees of future performance nor promises
that goals or targets will be met, and involve a number of risks,
uncertainties and other factors that are difficult to predict and
could cause actual results to differ materially from those
expressed or implied. These risks include, without limitation,
risks that: Accenture’s results of operations have been, and may in
the future be, adversely affected by volatile, negative or
uncertain economic and political conditions and the effects of
these conditions on the company’s clients’ businesses and levels of
business activity; Accenture’s business depends on generating and
maintaining client demand for the company’s services and solutions
including through the adaptation and expansion of its services and
solutions in response to ongoing changes in technology and
offerings, and a significant reduction in such demand or an
inability to respond to the evolving technological environment
could materially affect the company’s results of operations; if
Accenture is unable to match people and their skills with client
demand around the world and attract and retain professionals with
strong leadership skills, the company’s business, the utilization
rate of the company’s professionals and the company’s results of
operations may be materially adversely affected; Accenture faces
legal, reputational and financial risks from any failure to protect
client and/or company data from security incidents or cyberattacks;
the markets in which Accenture operates are highly competitive, and
Accenture might not be able to compete effectively; Accenture’s
ability to attract and retain business and employees may depend on
its reputation in the marketplace; Accenture’s environmental,
social and governance (ESG) commitments and disclosures may expose
it to reputational risks and legal liability; if Accenture does not
successfully manage and develop its relationships with key
ecosystem partners or fails to anticipate and establish new
alliances in new technologies, the company’s results of operations
could be adversely affected; Accenture’s profitability could
materially suffer if the company is unable to obtain favorable
pricing for its services and solutions, if the company is unable to
remain competitive, if its cost-management strategies are
unsuccessful or if it experiences delivery inefficiencies or fail
to satisfy certain agreed-upon targets or specific service levels;
changes in Accenture’s level of taxes, as well as audits,
investigations and tax proceedings, or changes in tax laws or in
their interpretation or enforcement, could have a material adverse
effect on the company’s effective tax rate, results of operations,
cash flows and financial condition; Accenture’s results of
operations could be materially adversely affected by fluctuations
in foreign currency exchange rates; changes to accounting standards
or in the estimates and assumptions Accenture makes in connection
with the preparation of its consolidated financial statements could
adversely affect its financial results; as a result of Accenture’s
geographically diverse operations and strategy to continue to grow
in key markets around the world, the company is more susceptible to
certain risks; if Accenture is unable to manage the organizational
challenges associated with its size, the company might be unable to
achieve its business objectives; Accenture might not be successful
at acquiring, investing in or integrating businesses, entering into
joint ventures or divesting businesses; Accenture’s business could
be materially adversely affected if the company incurs legal
liability; Accenture’s global operations expose the company to
numerous and sometimes conflicting legal and regulatory
requirements; Accenture’s work with government clients exposes the
company to additional risks inherent in the government contracting
environment; if Accenture is unable to protect or enforce its
intellectual property rights or if Accenture’s services or
solutions infringe upon the intellectual property rights of others
or the company loses its ability to utilize the intellectual
property of others, its business could be adversely affected;
Accenture may be subject to criticism and negative publicity
related to its incorporation in Ireland; as well as the risks,
uncertainties and other factors discussed under the “Risk Factors”
heading in Accenture plc’s most recent Annual Report on Form 10-K
and other documents filed with or furnished to the Securities and
Exchange Commission. Statements in this news release speak only as
of the date they were made, and Accenture undertakes no duty to
update any forward-looking statements made in this news release or
to conform such statements to actual results or changes in
Accenture’s expectations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221216005055/en/
Stacey Jones Accenture Media Relations +1 917 452 6561
stacey.jones@accenture.com
Katie O’Conor Accenture Investor Relations +1 973 301 3275
catherine.m.oconor@accenture.com
Accenture (NYSE:ACN)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Accenture (NYSE:ACN)
Historical Stock Chart
Von Apr 2023 bis Apr 2024