Accenture Reports Solid Second Quarter; CEO To Step Down - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // IT Strategy

Accenture Reports Solid Second Quarter; CEO To Step Down

The IT-services firm says 2Q revenue rose 15% from the year-ago quarter, while net income was up 4%.

Accenture Ltd. said Tuesday that revenue for its second quarter, ended Feb. 29, rose 15% year-over-year to $3.68 billion on the strength of increased demand for outsourcing services. The IT-services vendor also said top executive Joe Forehand will relinquish his CEO title on Sept. 1, although the 55-year-old will remain as chairman. Accenture said it expects to name a new CEO, most likely from within, by mid-April. An Accenture spokesman said Forehand made the decision to leave because "he felt it was the right time."

Accenture's second-quarter net income rose 4% year-over-year, to $123.1 billion from $118.7 billion. But earnings per share fell to 22 cents from 25 cents as the number of total shares outstanding increased. New bookings in the second quarter increased 61% to $7.65 billion.

Most of Accenture's growth is coming from its sales of outsourcing services, which are benefiting from the trend among big businesses to send back-office and routine IT work abroad to low-wage countries such as India. Accenture maintains application development centers in Bangalore and Mumbai. Revenue from outsourcing grew 54% year-over-year to $1.2 billion during the quarter. Consulting, still the firm's biggest revenue generator, grew just 1.5% to $2.03 billion.

Accenture said it expects sales during the current quarter to come in between $3.4 billion and $3.55 billion. In 2003, third-quarter sales were $3.42 billion.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
News
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
Slideshows
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll