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December 16, 2010, 4:40 PM EST
By Katie Hoffmann
(Updates with analyst’s comment in fourth paragraph.)
Dec. 16 (Bloomberg) -- Accenture Plc, the second-largest technology-consulting company, forecast sales for this quarter that topped some analysts’ estimates, as businesses boost spending on consulting projects.
Net revenue, or sales before reimbursements, will rise to $5.6 billion to $5.8 billion for the quarter ending in February, the Dublin-based company said today in a statement. Analysts estimated $5.62 billion on average, according to data compiled by Bloomberg.
Sales climbed in the first quarter for the third consecutive period, after more than a year of declines, as corporations shift projects to the company. Consulting sales, which account for almost 60 percent of total revenue, advanced 14 percent.
“There’s been a bit of inflection toward more consulting, more discretionary projects for growth, rather than just cost- cutting,” said Darrin Peller, an analyst with Barclays Capital in New York who rates the shares “overweight” and doesn’t own them.
Fiscal first-quarter net income increased 20 percent to $534.7 million, or 81 cents a share, from $444.8 million, or 67 cents, a year earlier. Analysts estimated 75 cents on average.
Accenture, which lags behind International Business Machines Corp. in technology-consulting sales, advanced 57 cents to $46.67 at 4 p.m. in New York Stock Exchange composite trading.
Chief Executive Officer Bill Green is stepping down Jan. 1 and will be replaced by Pierre Nanterme, a 27-year company veteran who runs the financial-services division, the company said in October. Green will remain chairman, Accenture said.
(Accenture will hold a conference call to discuss results at 4:30 p.m. New York time. Go to www.accenture.com to listen.)
--Editors: Margot Slade, Cécile Daurat
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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(Updates with analyst’s comment in fourth paragraph.)
Dec. 16 (Bloomberg) -- Accenture Plc, the second-largest technology-consulting company, forecast sales for this quarter that topped some analysts’ estimates, as businesses boost spending on consulting projects.
Net revenue, or sales before reimbursements, will rise to $5.6 billion to $5.8 billion for the quarter ending in February, the Dublin-based company said today in a statement. Analysts estimated $5.62 billion on average, according to data compiled by Bloomberg.
Sales climbed in the first quarter for the third consecutive period, after more than a year of declines, as corporations shift projects to the company. Consulting sales, which account for almost 60 percent of total revenue, advanced 14 percent.
“There’s been a bit of inflection toward more consulting, more discretionary projects for growth, rather than just cost- cutting,” said Darrin Peller, an analyst with Barclays Capital in New York who rates the shares “overweight” and doesn’t own them.
Fiscal first-quarter net income increased 20 percent to $534.7 million, or 81 cents a share, from $444.8 million, or 67 cents, a year earlier. Analysts estimated 75 cents on average.
Accenture, which lags behind International Business Machines Corp. in technology-consulting sales, advanced 57 cents to $46.67 at 4 p.m. in New York Stock Exchange composite trading.
Chief Executive Officer Bill Green is stepping down Jan. 1 and will be replaced by Pierre Nanterme, a 27-year company veteran who runs the financial-services division, the company said in October. Green will remain chairman, Accenture said.
(Accenture will hold a conference call to discuss results at 4:30 p.m. New York time. Go to www.accenture.com to listen.)
--Editors: Margot Slade, Cécile Daurat
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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