It's nice to be a global powerhouse like Accenture
In Accenture's fiscal first quarter, net revenues surged 14% to $4.75 billion, and net income increased 28% to $0.46 per share. The company demonstrated strength in its core businesses: consulting (for business strategies and information technologies) and outsourcing (including HR and other non-core capabilities for customers).
Bookings are a key indicator for Accenture, and on this metric, the first quarter was particularly strong. The company tallied about $5.5 billion in new bookings, with a 54% increase for consulting (to $3 billion) and a 46% increase in outsourcing (to $2.5 billion). A full breakdown of the quarterly numbers can be found here.
Accenture's sophisticated global platform is a big competitive advantage, and it's only helped by key demand drivers such as M&A, growth in emerging markets, and the need for multinationals to improve competitiveness.
Nonetheless, the company faces a variety of risks. Its competition is intense, with rivals such as IBM
Furthermore, massive IT projects can go awry. Witness Accenture's botched contract with the U.K. National Health Service, which has subsequently been assigned to another firm.
Looking forward, Accenture expects to post revenues of $4.6 billion to $4.8 billion in the fiscal second quarter. On a full-year basis, revenues should increase 9% to 12%, and cash flow should be about $1.95 billion to $2.15 billion.
In light of Accenture's performance this year, it should be no surprise that the stock has enjoyed a tidy return of 20%. Yet the valuation remains reasonable, at about eight times cash flow. So long as the company continues to leverage its global platform and generate new bookings, the upcoming year should also be kind to shareholders.
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Fool contributor Tom Taulli does not own shares of companies mentioned in this article. He is currently ranked 834 out of 17,896 in CAPS.