Accenture Shares Are Trading Higher Following Upbeat Q2 Earnings, Strong Q3 Guidance, Dividend Hike

Accenture PLC’s ACN revenue rose 8% year-over-year to $12.1 billion for the second quarter of FY21, beating the analyst estimate of $11.83 billion. The growth was partially offset by reimbursable travel cost revenue.

• New bookings rose 13% to $16 billion, with record bookings in consulting and outsourcing at $8.0 billion.
• The gross margin contracted 50 basis points to 29.7%.
• Operating income rose 11% to $1.65 billion, with a 30 basis point expansion to 13.7%.
• Net income rose 17% to $1.46 billion. EPS increased 10% to $2.03 above the analyst estimate of $1.9.
• The company generated an operating cash flow of $2.53 billion, and cash and equivalents amounted to $9.2 billion.
• The company announced a one-time bonus, equal to one week of base pay, for all people below the MD.
• Accenture raised the quarterly cash dividend 10% to $0.88.
• Accenture expects revenues for the third quarter of FY21 to be in the range of $12.55 billion to $12.95 billion, signifying a 10% to 13% growth, exceeding the consensus estimate of $12.18 billion.
• Price action: ACN shares traded higher by 4.82% at $277 in the premarket session on the last check Thursday.