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December 16, 2010, 5:42 PM EST
By Katie Hoffmann
(Updates with full-year profit forecast in sixth paragraph.)
Dec. 16 (Bloomberg) -- Accenture Plc, the second-largest technology-consulting company, forecast sales for this quarter and profit for the year 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 fiscal second 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.
Per-share profit for the year ending in August will be $3.08 to $3.16, compared with a previous forecast of as much as $3.08. Analysts projected $2.99 on average. Net revenue for the year ending in August will increase 8 percent to 11 percent, the company said. In fiscal 2010, net revenue was $21.6 billion, according to the company filings.
CEO Stepping Down
Accenture, which lags behind International Business Machines Corp. in technology-consulting sales, advanced as much as $1.23 to $47.90 in extended trading, after adding 57 cents to $46.67 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have climbed 12 percent this year.
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.
First quarter net revenue climbed 6 percent to $6.05 billion, topping analysts’ average estimate of $5.79 billion.
(To hear a replay of Accenture’s conference call on results go to www.accenture.com.)
--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 full-year profit forecast in sixth paragraph.)
Dec. 16 (Bloomberg) -- Accenture Plc, the second-largest technology-consulting company, forecast sales for this quarter and profit for the year 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 fiscal second 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.
Per-share profit for the year ending in August will be $3.08 to $3.16, compared with a previous forecast of as much as $3.08. Analysts projected $2.99 on average. Net revenue for the year ending in August will increase 8 percent to 11 percent, the company said. In fiscal 2010, net revenue was $21.6 billion, according to the company filings.
CEO Stepping Down
Accenture, which lags behind International Business Machines Corp. in technology-consulting sales, advanced as much as $1.23 to $47.90 in extended trading, after adding 57 cents to $46.67 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have climbed 12 percent this year.
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.
First quarter net revenue climbed 6 percent to $6.05 billion, topping analysts’ average estimate of $5.79 billion.
(To hear a replay of Accenture’s conference call on results go to www.accenture.com.)
--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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