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Accenture revenue tops estimates on strong cloud services demand

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Reuters
Last Updated : Sep 29 2016 | 5:23 PM IST

REUTERS - Accenture Plc, a provider of consulting and outsourcing services, reported a better-than-expected 7.6 percent rise in quarterly revenue as its investments to boost digital and cloud services pay off.

Shares of the company, which also reported a better-than-expected adjusted profit, rose 2 percent in premarket trading.

Accenture is beefing up its digital and cloud services as it seeks to gain market share from rivals including IBM Corp and India's Infosys Ltd and Tata Consultancy Services Ltd.

"Looking ahead, we will continue to invest in high-growth areas ... with a particular focus on digital, cloud and security services," Chief Executive Pierre Nanterme said in a statement.

Accenture said it expected first-quarter revenue between $8.40 billion and $8.65 billion. Analysts on an average expected $8.59 billion, according to ThomsonReuters I/B/E/S.

Revenue from the company's consulting business, which accounts for more than half its total revenue and is the company's most profitable, rose 10.8 percent to $4.61 billion.

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Outsourcing revenue rose 4.1 percent to $3.88 billion.

Net income rose to $1.13 billion or $1.68 per share in the fourth quarter ended Aug. 31, from $788.13 million or $1.15 per share, a year earlier. Excluding items, the company earned $1.31 per share.

Revenue rose to $8.49 billion from $7.89 billion.

Analysts had expected revenue of $8.43 billion and adjusted profit of $1.30 per share.

(Reporting by Rishika Sadam in Bengaluru; Editing by Ted Kerr and Sayantani Ghosh)

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First Published: Sep 29 2016 | 5:11 PM IST

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