Accenture Plc's quarterly profit beat Wall Street expectations for the eighth straight quarter, as the technology outsourcing and consultancy company held on to growth in its European business, bucking the trend indicated by rivals.
Last month, Cognizant Technology Solutions Corp said it does not expect Europe to rebound in 2012. Earlier, Indian rival Infosys Ltd had warned of lower client spending due to the euro zone debt crisis.
Both the companies get about a fifth of their revenue from Europe, while the region accounts for nearly 40% of Accenture's business.
There are early signs of improvement in the US economy and progress to stabilize the euro zone, Chief Executive Pierre Nanterme said on a conference call.
"In technology outsourcing, we see increasing demand across all geographies, including continued strength in Europe, as clients continue to reduce their IT operating costs," Chief Financial Officer Pamela Craig said.
Third-quarter revenue from Europe, West Asia and Africa grew 8% to $2.8 billion. Revenue from the Americas grew 13% to $3 billion.
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Stronger outlook
Dublin-based Accenture raised its full-year outlook and now expects a profit between $3.82 and $3.90 per share. It had previously forecast a profit of $3.76 to $3.84 a share.
The company also raised its revenue growth forecast to between 10% and 12% from 7% to 10%, in local currency.
It expects new bookings -- a key indicator of future sales -- for 2012 to be in the upper half of its previously forecast range of $28 billion to $31 billion, it said in a statement.
December-February net income rose to $714.2 million, or 97 cents per share, from $565.8 million, or 75 cents per share, a year ago. Revenue rose 12% to $6.8 billion.
"The numbers look good, they came out at the high end of their revenue target range," Morningstar analyst Swami Shanmugasundaram said before the call.
New bookings totaled $7.94 billion for the second quarter, up 14% from the year-ago period and nearly 2% sequentially.
Shares of Accenture rose 1.5% to $64.70 in trading after the bell. They closed at $63.75 on Thursday on the New York Stock Exchange.