Accenture beats quarterly estimates on digital and cloud strength

Accenture beats quarterly estimates on digital and cloud strength

Accenture Plc beat Wall Street estimates for first-quarter earnings on Thursday, as investments in its fast-growing digital and cloud services businesses continue to pay off.

FILE PHOTO:  Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona
FILE PHOTO: Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona, February 26, 2013. REUTERS/Albert Gea

REUTERS: Accenture Plc beat Wall Street estimates for first-quarter earnings on Thursday, as investments in its fast-growing digital and cloud services businesses continue to pay off.

The IT consulting firm shifted its focus to offering digital and cloud services, which include everything from managing clients' social media marketing strategies to helping them move to the cloud, in a bid to boost margins.

The company reported gross margin of 32.1per cent, compared with 31.1per cent a year earlier.

The consulting and outsourcing services provider forecast current-quarter revenue between US$10.85 billion and US$11.15 billion, the midpoint of which is below the average analyst estimate of US$11.09 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to US$1.36 billion, or US$2.09 per share, in the first-quarter ended Nov. 30, from US$1.27 billion, or US$1.96 per share, a year earlier.

The company earned a quarterly profit of US$2.09 per share, above analysts' expectations of US$2 per share.

Net revenue rose to US$11.36 billion, beating estimates of US$11.14 billion.

Shares of the company rose 1.03per cent in premarket trading.

(Reporting by Amal S in Bengaluru; Editing by Krishna Chandra Eluri)

Source: Reuters

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