Accenture revenue tops estimates on cloud services demand
Bengaluru: Accenture Plc, a provider of consulting and outsourcing services, reported better-than-expected 7.6% rise in quarterly revenue as its investments to boost digital and cloud services paid off.
Shares of Accenture, which also reported a better-than-expected adjusted profit, rose 2% in premarket trading.
Accenture is beefing up its digital and cloud services as it seeks to gain market share from its rivals including IBM Corp and India’s Infosys Ltd and Tata Consultancy Services Ltd.
“Looking ahead, we’ll continue to invest in high-growth areas...with a particular focus on digital, cloud and security services,” Accenture’s chief executive officer 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.
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% to $4.61 billion.
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 31 August, 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 an adjusted profit of $1.30 per share. Reuters