March 23, 2023 — Accenture Plc(NYSE:ACN) reported financial results for the second quarter of fiscal 2023, ended February 28, 2023, with revenues of $15.8 billion, an increase of 5% in U.S. dollars and 9% in local currency over the same period last year.
Accenture Plc(NYSE:ACN) posted fiscal Q2 adjusted earnings of $2.69 per diluted share, up 6% from a year earlier.
Analysts polled by Capital IQ expected adjusted EPS of $2.50.
Revenue for the quarter ended Feb. 28 was $15.81 billion, up from $15.05 billion a year ago. Analysts polled by Capital IQ expected $15.59 billion.
The consulting company said it expects fiscal Q3 revenue of $16.1 billion to $16.7 billion. Analysts surveyed by Capital IQ are looking for $16.65 billion.
For fiscal 2023, adjusted earnings are projected to be $11.41 to $11.63 per share. Analysts polled by Capital IQ are expecting adjusted EPS of $11.46.
GAAP operating income was $1.94 billion, compared to $2.06 billion for the second quarter last year, and operating margin was 12.3% compared to 13.7% for the second quarter last year. Adjusted operating margin was 13.8%, an expansion of 10 basis points from the second quarter of fiscal 2022.
GAAP diluted earnings per share were $2.39, compared to $2.54 for the second quarter last year. Adjusted EPS were $2.69, an increase of 6% from the second quarter of fiscal 2022.
New bookings for the quarter were a record $22.1 billion, with consulting bookings of $10.7 billion and managed services bookings of $11.4 billion.
Company declares quarterly cash dividend of $1.12 per share, up 15% from a year ago。
Julie Sweet, chair and CEO, Accenture, said, “Our strong financial results this quarter again demonstrate that our ability to bring together industry, functional and technology expertise as well as managed services continues to differentiate us with our clients. Our record bookings reflect the confidence and trust that our clients have in us to create value and help them transform at speed. We are also taking steps to lower our costs in fiscal year 2024 and beyond while continuing to invest in our business and our people to capture the significant growth opportunities ahead.”
Accenture updates business outlook for fiscal 2023; now expects full-year revenue growth of 8% to 10% in local currency and foreign-exchange impact of negative 4.5%; GAAP operating margin of 14.1% to 14.3%; adjusted operating margin of 15.3% to 15.5%; GAAP EPS of $10.84 to $11.06; adjusted EPS of $11.41 to $11.63; increases operating cash flow range to $8.7 billion to $9.2 billion from $8.5 billion to $9.0 billion; and increases free cash flow range to $8.0 billion to $8.5 billion from $7.7 billion to $8.2 billion。
Dividend
On February 15, 2023, a quarterly cash dividend of $1.12 per share was paid to shareholders of record at the close of business on January 12, 2023. These cash dividend payments totaled $708 million.
Accenture plc has declared another quarterly cash dividend of $1.12 per share for shareholders of record at the close of business on April 13, 2023. This dividend, which is payable on May 15, 2023, represents a 15% increase over the quarterly dividend rate of $0.97 per share in fiscal 2022.
Share Repurchase Activity
During the second quarter of fiscal 2023, Accenture repurchased or redeemed 4.1 million shares for a total of $1.12 billion, including approximately 2.5 million shares repurchased in the open market. This brings Accenture’s total share repurchases and redemptions for the first half of fiscal 2023 to 9.3 million shares for a total of $2.54 billion, including approximately 7.0 million shares repurchased in the open market.
Accenture’s total remaining share repurchase authority at February 28, 2023 was approximately $4.2 billion.
At February 28, 2023, Accenture had approximately 632 million total shares outstanding.
Business Outlook
Third Quarter Fiscal 2023
Accenture expects revenues for the third quarter of fiscal 2023 to be in the range of $16.1 billion to $16.7 billion, an increase of 3% to 7% in local currency, reflecting the company’s assumption of an approximately negative 3.5% foreign-exchange impact compared with the third quarter of fiscal 2022.
Fiscal Year 2023
Accenture’s business outlook for fiscal 2023 now assumes that the foreign-exchange impact on its results in U.S. dollars will be approximately negative 4.5% compared with fiscal 2022; the company previously expected a negative 5% foreign-exchange impact.
For fiscal 2023, the company now expects revenue growth to be in the range of 8% to 10% in local currency, compared to 8% to 11% previously.
Accenture now expects GAAP operating margin for fiscal 2023 to be in the range of 14.1% to 14.3%, compared to 15.3% to 15.5% previously, and adjusted operating margin, which excludes an estimated $800 million for business optimization costs to be in the range of 15.3% to 15.5%, an expansion of 10 to 30 basis points from fiscal 2022.
The company now expects its GAAP annual effective tax rate to be in the range of 22.5% to 24.5%, compared to 23% to 25% previously, and its adjusted annual effective tax rate, which excludes the tax impacts of business optimization costs and an anticipated gain on an investment, to be in the range of 23% to 25%.
The company now expects GAAP diluted EPS to be in the range of $10.84 to $11.06, compared to $11.20 to $11.52 previously, and adjusted EPS to be in the range of $11.41 to $11.63, an increase of 7% to 9% over fiscal 2022 diluted EPS of $10.71. This excludes $0.96 for business optimization costs and $0.39 for an anticipated gain on an investment.