ACN Raises FY11 Guidance

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Last Update: 24-Jun-11 10:00 ET

Accenture (ACN $56.71 +1.02) reported third quarter earnings of $0.93 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.89.

Revenues rose 20.6% year/year to $6.72 billion versus the $6.43 bln consensus.

Consulting net revenues for the quarter were $3.97 bln, an increase of 23% in U.S. dollars and 17% in local currency over the third quarter of fiscal 2010. Outsourcing net revenues were $2.75 bln, an increase of 17% in U.S. dollars and 12% in local currency year/year.

New bookings for the third quarter were $7.1 bln and reflect a positive 6% foreign-currency impact compared with new bookings in the third quarter last year. During Q3, Accenture repurchased or redeemed 11.4 million shares for a total of $644 million, including 9.7 million shares repurchased in the open market. This brings Accenture's total share repurchases and redemptions for the first three quarters of fiscal 2011 to 29.7 million shares, including 13.1 million shares repurchased in the open market, for a total of ~$1.4 bln. Accenture's total remaining share repurchase authority at May 31, 2011, was ~$1.7 bln.

For the fourth quarter, the company expects to see revenue fall in the range of $6.4 billion to $6.6 billion versus the $6.19 bln Capital IQ Consensus Estimate.

For its fiscal year 2011, the company raises its earnings guidance to $3.36 to $3.40 from $3.22 to $3.30 versus $3.24 Capital IQ Consensus Estimate.

The co now expects operating cash flow to be in the range of $2.9 bln to $3.1 bln; now expects property and equipment additions to be $400 million; and now expects free cash flow to be in the range of $2.5 bln to $2.7 bln. The company now expects its annual effective tax rate to be in the range of 27-28%. Accenture now expects new bookings to be at the upper end of its previously guided range of $25 billion to $28 billion for the full fiscal year.