Accenture Plc (NYSE: ACN) stock rose over 0.7% on 28th June, 2019 (as of 12:39 pm GMT-4; Source: Google finance) as the new bookings at the company, which gets about half of its revenue from outside the United States, were $10.6 billion, down from $11.7 billion in the year ago quarter, due to a 4% hit from a stronger dollar. However, for the third quarter, the company has posted better than expected results and has raised the forecast for the full year. Net income attributable to the company rose to $1.25 billion, in the third quarter ended May 31, from $1.04 billion, a year earlier. ACN had record free cash flow for both the quarter of $2 billion and year-to-date of $4.2 billion, which reflect both the strong profitability and the excellent DSO management.
Moreover, Consulting bookings were $6 billion, with a book-to-bill of 1. Outsourcing bookings were $4.6 billion, with a book-to-bill of 0.9.
ACN in the third quarter of FY 19 has reported the adjusted earnings per share of $1.93, beating the analysts’ estimates for the adjusted earnings per share of $1.89, according to IBES data from Refinitiv. The beat was driven by the company’s focus on digital and cloud services, which include everything from managing clients’ social media marketing strategies to helping them move to the cloud, as the IT services industry struggles with falling margins. The company had reported the adjusted revenue growth of 8.4 percent to $11.10 billion in the first quarter of FY 19, beating the analysts’ estimates for revenue of $11.04 billion. The revenue growth of 8.4% in local currency in the third quarter continued to be driven on the back of strong double-digit growth in all three areas of The New, including digital, cloud and security-related services. Operating margin of 15.5% expanded 20 basis points for the quarter and reflects strong underlying profitability.
The company has shifted its focus to digital and cloud services, which include everything from managing clients’ social media marketing strategies to helping them move to the cloud, as the IT services industry struggles with falling margins.
For the full-year 2019, the company now expects revenue growth to be in the range of 8% to 9%, compared with previous forecast of a growth of 6.5% to 8.5%. It expects to post profit between $7.28 per share to $7.35 per share, up from $7.18 to $7.32 per share it estimated earlier.