Accenture (NYSE: ACN) is up 3% after announcing Q2 2022 earnings that topped its earnings estimates and provided upbeat guidance for Q3 2022. CEO Julie Sweet said:
Our outstanding second-quarter financial performance demonstrates continued strong, broad-based demand across all our markets, services and industries. We continue to take significant market share as clients increasingly turn to Accenture as the partner uniquely positioned to help them navigate today’s accelerating pace of change.
Accenture beats Q2 2022 estimates
The company reported earnings of $2.54 per share, beating estimates of $2.15 per share. The earnings were a 14% YoY from $2.23 per share a year ago, including investment gain. Operating income during the quarter was $2.06 billion, a YoY increase of 25% with an operating margin of 13.7& consistent with Q2 2021.
Revenue was $15.05 billion representing a YoY increase of 28% in local currency and 24% in US dollars over Q2 2021. Analysts had predicted revenue of $13.14 billion. The revenue was around $300 million above Accenture’s guidance range of $14.3 billion to $14.74 billion. Consulting revenues were up 29% to $8.32 billion while outsourcing revenue was up 19% in US dollars to $6.72 billion.
The company had new bookings of $19.6 billion with record outsourcing and consulting bookings of $8.7 billion and $10.9 billion, respectively. Julie added:
The trust we have earned from our clients and partners, our continuous innovation and our ability to consistently attract the best people are directly linked to our commitment to creating 360° value for all our stakeholders — clients, people, partners, shareholders and communities.
Q3 and FY2022 outlook
For the third quarter, the company anticipates revenue of $17.7 to $16.15 billion compared to the $13.94 billion that analysts expect. Also, for the Full-year, the company is looking for earnings per share of $10.61 to $10.81 compared to the Consensus of $9.68. Accenture also anticipates fiscal 2022 revenue growth of between 24% and 26% in local currency relative to previous guidance of between 19% and 22%. The company’s business outlook continues to factor in the impact of foreign exchange on results in US dollars which will be -3% relative to fiscal 2021.