Since 2003, Accenture
Late last week, the company posted its fiscal Q3 results. Revenues increased 15.3% to $5.08 billion as demand for Accenture's consulting and outsourcing services continued their momentum. The growth comes despite the intense competition from players like Wipro
Net income was $345.4 million, which was up about 1% over the past year, as the company took a $58 million charge for an assortment of reorganization expenses. Accenture continues to rack up lots of contract business. In Q3, the company added $6.2 billion in bookings, and the consulting segment hit a record with $3.5 billion in new business.
With all this growth, it's no surprise that Accenture has boosted guidance. The company increased 2007 earnings-per-share estimates from $1.88-$1.93 to $1.94-$1.96. Operating cash flow should be about $2.2 billion to $2.4 billion.
A couple weeks ago, Accenture announced that it will invest $250 million over the next three years to build a more sophisticated consulting platform. The goal is to manage the complex information technology (IT) assets of customers such as software renewals, data center consolidation, application testing, and security. It's a smart move, and the strategy has been a success for companies like IBM
With a strong customer pipeline and solid execution, Accenture should sustain its growth into next year. There should also be continued improvement in cost-cutting, which should help margins. This consistency is a hallmark of high performance companies and should help provide even more upside for shareholders.
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