Accenture revenue tops estimates on strong cloud services demand

Reuters News
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Posted: Sep 29, 2016 7:36 AM

(Reuters) - Accenture Plc <ACN.N>, a provider of consulting and outsourcing services, reported a better-than-expected 7.6 percent rise in quarterly revenue as its investments to boost digital and cloud services pay off.

Shares of the company, which also reported a better-than-expected adjusted profit, rose 2 percent in premarket trading.

Accenture is beefing up its digital and cloud services as it seeks to gain market share from rivals including IBM Corp <IBM.N> and India's Infosys Ltd <INFY.NS> and Tata Consultancy Services Ltd <TCS.NS>.

"Looking ahead, we will continue to invest in high-growth areas ... with a particular focus on digital, cloud and security services," Chief Executive 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 I/B/E/S.

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 percent 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 Aug. 31, 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 adjusted profit of $1.30 per share.

(Reporting by Rishika Sadam in Bengaluru; Editing by Ted Kerr and Sayantani Ghosh)