Accenture Reports Very Strong First-Quarter Results and Raises Business Outlook for Fiscal 2021

Accenture (NYSE: ACN) reported financial results for the first quarter of fiscal 2021, ended Nov. 30, 2020, with revenues of $11.8 billion, an increase of 4% in U.S. dollars and 2% in local currency over the same period last year. Revenue growth for the quarter was reduced approximately 2 percentage points by a decline in revenues from reimbursable travel costs.

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GAAP diluted earnings per share were $2.32, an 11% increase from $2.09 for the first quarter last year, including gains on an investment of $0.15 and $0.08, respectively. On an adjusted basis, EPS of $2.17 increased 8% from $2.01 for the first quarter last year.

Julie Sweet, Accenture’s chief executive officer, said, “I am pleased that we delivered first-quarter revenues above our expectations, with broad-based improvement across industries and geographic markets, reflecting the relevance of our services, the strength of our growth strategy and the advantages of our scale in digital, cloud and security. New bookings, profitability and free cash flow were all very strong, and we again returned substantial cash to shareholders while continuing to invest in our business and our people.

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Financial Review

Revenues for the first quarter of fiscal 2020 were $11.76 billion, compared with $11.36 billion for the first quarter of fiscal 2020, an increase of 4% in U.S. dollars and 2% in local currency, including a reduction of approximately 2 percentage points from a decline in revenues from reimbursable travel costs. Revenues were more than $200 million above the company’s guided range of $11.15 billion to $11.55 billion. The foreign-exchange impact for the quarter was approximately positive 1.5%, consistent with the assumption provided in the company’s fourth-quarter earnings release.

  • Consulting revenues for the quarter were $6.33 billion, a decrease of 1% in U.S. dollars and 2% in local currency compared with the first quarter of fiscal 2020, including a reduction of approximately 3 percentage points from a decline in revenues from reimbursable travel costs.
  • Outsourcing revenues were $5.43 billion, an increase of 9% in U.S. dollars and 8% in local currency compared with the first quarter of fiscal 2020.

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