Accenture plc (ACN - Analyst Report) reported better-than-expected third quarter fiscal 2016 results.
Its third quarter fiscal 2016 earnings per share of $1.41 beat the Zacks Consensus Estimate of $1.40 per share. Also, earnings increased on a year-over-year basis, primarily attributable to higher revenues, lower tax rate and share count.
Revenues and Bookings
Accenture’s third quarter net revenue not only increased 8.6% year over year to $8.434 billion but also surpassed the Zacks Consensus Estimate of $8.246 billion. In local currency terms, revenues increased 10% year over year. Net revenue also came ahead of management’s guided range of $8.10 billion and $8.35 billion, primarily aided by a 12% increase in Consulting revenues ($4.62 billion). Outsourcing revenues increased 4% on a year-over-year basis ($3.81 billion). It is worth mentioning that Consulting revenues increased 14% in local currency whereas Outsourcing revenues increased 6% in local currency.
Among the operating segments, Communications, Media & Technology revenues were up 6% on a year-over-year basis to $1.71 billion. Revenues from Health & Public Services and Financial Services increased 11% and 10% year over year to $1.54 billion and $1.80 billion, respectively. Revenues from Products increased 15% on a year-over-year basis and came in at $2.16 billion. Resources, however, decreased 2% on a year-over-year basis to $1.22 billion during the quarter.
Geographically, revenues from the North Americas and Europe increased 10% and 11% on a year-over-year basis, respectively. Revenues from Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia and Turkey) were flat on a year-over-year basis.
Accenture reported new bookings of $9.1 billion during the quarter, which were negatively impacted by foreign currency fluctuations. Consulting bookings and Outsourcing bookings for the quarter amounted to $4.9 billion and $4.2 billion, respectively.
