Accenture Rides Outsourcing Growth To 21% Revenue Jump

Gains in its outsourcing and consulting businesses helped Accenture achieve strong revenue growth in its fiscal third quarter.
Accenture Wednesday said strong gains in its outsourcing and consulting businesses helped it achieve 21% revenue growth in its fiscal third quarter ended May 31 compared with a year ago.

The company's revenue reached $3.7 billion, while net income jumped 59% to $210.4 million.

Accenture saw the most growth during the quarter in its outsourcing business. The company's outsourcing sales increased 37% to $1.4 billion on the strength of major deals with Payless ShoeSource, Danish transportation conglomerate DSV Group, and several other large customers. Consulting revenue grew 13% to $2.3 billion. Schwab Soundview Capital Markets analyst Cindy Shaw says investments Accenture has made in new technology areas, including radio-frequency identification are paying off in customer wins. "These capabilities will drive pricing power and market share gains" for Accenture, Shaw says.

For its fourth quarter, Accenture expects revenue of $3.4 billion to $3.5 billion and earnings per share of between 26 cents and 29 cents.

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