IoT
Business & Finance
News
3/4/2003
02:07 PM
50%
50%

Accenture's 2Q Sales Drop But Profits Rise

The professional services and IT consulting firm says sales were down 3% from a year earlier, but profits rose to $118.7 million.

Professional services and IT consulting firm Accenture said Monday that revenue for its second quarter ended Feb. 28 fell 3% year-over-year to $2.83 billion, while per-share earnings were 25 cents, or $118.7 million, compared with 2 cents, or $10.6 million, a year ago when the company incurred steep investment write-offs totaling $211 million.

Revenue from outsourcing grew 33% to $828 million, its biggest growth area during the period. Outsourcing now represents 29% of the company's total net revenue. On the downside, Accenture's sales from business consulting dropped 15% to $2 billion, mirroring larger trends in the professional-services industry.

The company's communications and high-tech group and its government operating group posted revenue gains of 5% and 12%, respectively. Hit by the downturn in the financial industry, the financial-service operating group reported a 5% decrease in revenue. Accenture said it booked $4.75 billion in new business in the quarter, its second-highest total for a three-month fiscal period.

Looking ahead, Accenture said it expects to record per-share earnings between 24 cents and 26 cents in the third quarter ending May 31. For the full fiscal year, it anticipates earnings between 98 cents and $1.05 per share. Officials said the firm expects to take a $60 million charge in the third quarter to cover the cost of staff reductions. It trimmed about 1% of its workforce last year.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of June 19, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.