Global consulting and IT services firm Accenture has reported a solid overall second quarter, although growth was patchy across Europe.
The company is listed on the New York Stock Exchange and headquartered in Ireland. It reported that revenues hit $11.1bn in the quarter, an increase of 7% over the same period last year. Diluted earnings per share were $1.91, a 10% increase from the second quarter last year.
Operating income was $1.49bn, which was a 7% jump on last time, and the operating margin increased to 13.4%. New bookings for the quarter were $14.2bn, with consulting bookings of $7.2bn and outsourcing bookings of $7bn.
North America generated $5.26bn of sales compared with $4.75bn last year – an increase of 11%. But sales in Europe went down slightly to $3.63bn, compared to $3.64bn the previous year. Sales were up in the likes of Germany, Italy and Ireland, but down in the UK.
Accenture’s total cash balance as at 29 February 2020 was $5.4bn, compared with $6.1bn on 31 August 2019, six month's previously.
Earlier this month, Accenture acquired ESR Labs, a Munich, Germany-based company that develops embedded software for leading German car brands and suppliers.
Julie Sweet, Accenture’s chief executive officer, who was appointed last autumn, said: “The world is now facing a global health crisis and significant disruption in the global economy. We exited the first half of our fiscal year in a clear position of strength - delivering excellent results, gaining significant market share and continuing to successfully execute our growth strategy.
“As we move forward, we will focus on helping our clients navigate and succeed in this uncertain period and continue to invest in our business and our people for the long term.”
Considering the potential overall effects of the coronavirus, the company expects third quarter sales in the range of $10.75bn and $11.15bn, or negative 2% to positive 2% growth in local currency, also reflecting the company’s assumption of a negative 1.5% foreign-exchange impact compared with the third quarter of fiscal 2019.
A wider range of projected results are now increasingly commonplace in the market, to take account of the pandemic.
