Accenture (ACN -5.6%) now expects FY14 (ends in August) local currency revenue growth of 3%-6% and (thanks to a lower tax rate) EPS of $4.50-$4.62, up from prior forecasts of 2%-6% and $4.44-$4.56. But the company has lowered its free cash flow guidance range by $300M to $2.9B-$3.2B.
FY14 new bookings guidance has been raised by $1B to $33B-$36B. FQ3 revenue guidance is set at $7.4B-$7.65B, in-line with a $7.56B consensus.
Consulting bookings rose by $200M Y/Y in FQ2 to $4.6B, and outsourcing bookings by $800M to $5.5B. Consulting revenue -1% Y/Y, even with FQ1. Outsourcing revenue +4% vs. +5%.
Much like IBM, Cisco, and several other tech giants, Accenture continues to struggle in Asia-Pac: Sales fell 7% Y/Y (4% exc. forex) to $908M after dropping 6% in FQ1. Americas sales +2% to $3.36B, EMEA +2% to $2.8B.
The health/public service vertical was a weak spot, with sales dropping 1% after rising 5% in FQ1. Financial services +4%, telecom/media/tech flat, products +4%, resources -2%.
Gross margin -30 bps Y/Y to 31.3%. SG&A spend fell to 17.9% of revenue from 18.3% a year ago.
$739M was spent on buybacks. Accenture still expects to spend $3.7B or more in FY14 on dividends and buybacks.
FQ2 results, PR