While most companies are pulling back and announcing layoffs, Accenture (NYSE: ACN) continues to grow at a nice pace. Basically, the main headwind has been currency volatility, not problems with getting new business.
For the prior quarter, net income increased from $381.3 million, or $0.60 per share to $479.9 million, or $0.74 per share. Net revenues increased 6% to $6.02 billion. All in all, Accenture has done a good job with cost controls.
In the quarter, free cash flow was a solid $396 million. In all, Accenture has $2.78 billion in the bank.
Essentially, there was strength across all segments. Although, a big driver was outsourcing (the revenues were up 7%). That is, clients are looking to find ways to cut costs and find efficiencies. And this is the sweet spot for Accenture.
Interestingly enough, the company also thinks there may be an uptick in business from financial institutions. The reason: the industry is undergoing a big transformation. Thus, there will be a need for consulting services as well as outsourcing capabilities.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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