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Accenture +6.5% on FQ2 beat, forex-adjusted guidance hike

Mar. 26, 2015 1:35 PM ETAccenture plc (ACN) StockBy: Eric Jhonsa, SA News Editor
  • In addition to beating FQ2 estimates, Accenture (NYSE:ACN) has hiked its FY15 (ends Aug. '15) local currency revenue growth guidance to 8%-10% from 5%-8%. However, forex is now expected to have an 800 bps impact on FY15 revenue growth, up from a prior 500 bps.
  • Due to the forex hit (widely expected), FY15 EPS guidance has been cut to $4.61-$4.71 from $4.66-$4.80 (consensus is at $4.75). Likewise, FQ1 revenue guidance of $7.35B-$7.6B (assumes an 1100 bps forex hit) is below a $7.63B consensus.
  • New consulting bookings fell by $400M Y/Y in FQ2 to $4.2B, and new outsourcing bookings by $400M to $5.1B. Forex had a 600 bps impact on bookings growth.
  • North American revenue was a strong point, rising 13% Y/Y to $3.41B. Europe fell 2% to $2.66B (700 bps forex hit), and "growth markets" rose 3% to $1.42B (900 bps forex hit). Telecom/media/tech revenue +8%; financial services +2%; health/public service +12%; products +6%; resources -1%.
  • Hurting EPS: Gross margin fell to 29.9% from 31.3% a year ago. Boosting EPS: SG&A spend fell to 16.3% of revenue from 17.9%, and $601M was spent to buy back 6.8M shares. Free cash flow was $220M, below net income of $743M.
  • Shares have surged to new highs.
  • FQ2 results, PR

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