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Accenture rallies on FQ1 beat, bookings growth, EPS guidance hike

  • Accenture (ACN +4.4%) is guiding for FQ2 revenue of $6.95-$7.25B, below a consensus of $7.28B. But the company is also reiterating guidance for 2%-6% FY14 (ends Aug. '14) local currency revenue growth, and (due to a smaller forex hit) slightly raising its FY14 EPS guidance range to $4.44-$4.56 from $4.42-$4.54 (consensus is at $4.47).
  • New bookings totaled $8.7B in FQ1, up from $8.4B in FQ4 and a depressed $7.5B in the year-ago period. Consulting ($4.3B) and outsourcing ($4.4B) respectively made up 49% and 51% of bookings vs. 46% and 54% in FQ4.
  • Opex rose 1% Y/Y, slightly less than rev. growth of 2%. Gross margin was 33.3%, +10 bps Q/Q and +50 bps Y/Y.
  • Americas revenue +3% Y/Y vs. +8% in FQ4, EMEA +3% vs. +2%, Asia-Pac -6% vs. -7%. Plenty of other tech companies have also been struggling in Asia-Pac.
  • Telecom/media/tech sales -3%, financial services +2%, health & public service +5%, products +6%, resources flat.
  • $722M was spent on buybacks, down from $1.1B in FQ4. The company added $5B to its buyback plan in September.
  • FQ1 results, PR
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