On March 27, Accenture
- Double-digit growth in consulting and outsourcing revenues boosted sales by 15%.
- Margins increased across the board, giving a surge to earnings per share.
- Accenture has a five-star rating in Motley Fool CAPS, while direct competitor IBM
(NYSE:IBM) has only a two-star rating.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$5,169.4 |
$4,491.1 |
15.1% |
|
Net Profit |
$408.0 |
$102.3 |
298.7% |
|
EPS |
$0.47 |
$0.11 |
327.3% |
|
Diluted Shares |
867.3 |
892.9 |
(2.9%) |
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
27.2% |
19.3% |
7.8 |
|
Operating Margin |
10.8% |
3.1% |
7.8 |
|
Net Margin |
7.9% |
2.3% |
5.6 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,141.9 |
$2,346.8 |
33.9% |
|
Accounts Rec. |
$2,287.5 |
$1,957.2 |
16.9% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$832.6 |
$757.9 |
9.8% |
|
Long-Term Debt |
$4.2 |
$28.0 |
(84.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$710.0 |
$683.7 |
3.8% |
|
Capital Expenditures |
$76.0 |
$72.0 |
5.6% |
|
Free Cash Flow |
$634.0 |
$611.7 |
3.6% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Wipro Whips Up Another Strong Quarter
- Was Affiliated Computer Cheap?
- I Love IBM
- What the Best Investors Do
Accenture is an Inside Value recommendation. Discover more of the market's best bargains with a free 30-day trial subscription.
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