Accenture Hangs On In Q2
The revenue marked 1 percent growth over the same period last year, well below the 6 percent growth rate posted in the previous quarter.
Net income before minority interest, excluding investment writedowns, increased 9 percent, to $236 million from $216 million, for the same period last year. Diluted earnings per share came in at 23 cents, up from 21 cents in 2001. Reported net income before minority interest, including investment writedowns, was $11 million for the second quarter, and diluted earnings per share on the same basis were two cents.
The strongest growth came in Accenture's government and resources operating groups, which grew by 36 percent, to $324 million in revenue, and 11 percent, to $525 million, respectively, during the quarter.
While the company saw little to negative growth in its three other operating groups--products, communications and high tech, and financial services--the rate of loss for each one decreased in the second quarter, leading company executives to believe the financial services, communications and technology sectors are finally stabilizing. Specifically, the products group had net revenues of $647 million (up 1 percent for the quarter) while communications and high tech brought in $751 million (down 7 percent) and financial services brought in $633 million (down 6 percent).
Accenture CEO Joe W. Forehand said in a statement the company recorded $9.8 billion in new bookings for the quarter, almost half of which were business transformation outsourcing engagements.
The company recorded a loss on investments that included a charge of $212 million that it expects to incur as part of its plan to sell off its venture and investment portfolio. Including the charge, the portfolio had a net book value $109 million as of February 28. Moving forward, the company says it will stop direct venture-capital investing and will not accept illiquid securities from clients or partners.
The company says while it is seeing clear signs of an economic recovery, that recovery is happening slowly. That said, Accenture is comfortable with analysts' estimates of 26 cents per share in earnings for the third quarter.