Accenture’s 3Q profit slides on lower revenue, but tops estimate and raises full-year view

Accenture reports better-than-expected 3Q profit

NEW YORK — Business consultant and outsourcing company Accenture Ltd. said its fiscal third-quarter profit declined, mainly due to the negative effects of the stronger dollar on international sales, but still topped Wall Street estimates.

The company also raised its profit outlook for the full year.

Net income fell to $444 million, or 68 cents per share, from $469.1 million, or 74 cents a share, a year earlier. Revenue fell 16 percent to $5.54 billion from $6.59 billion a year earlier, mostly hurt by currency exchange rates. Revenue before reimbursements totaled $5.15 billion, compared with $6.10 billion a year ago.

But analysts surveyed by Thomson Reuters had expected profit of just 64 cents a share on revenue of $5.2 billion.

“In the third quarter we delivered strong overall results, considering the difficult economic environment,” said CEO William D. Green.

Consulting revenue totaled $2.95 billion, a decrease of 20 percent in U.S. dollars, and outsourcing revenue slipped 9 percent to $2.19 billion. The company said it is on target for new bookings in the fiscal year in the range of $23 billion to $25 billion.

The company lifted its full-year profit outlook to a range of $2.67 to $2.70 from previous estimates of $2.60 to $2.67. That’s above analysts’ average $2.64 estimate. The company also narrowed its range for net revenue growth for the full fiscal year and expects it to be flat to slightly positive.

Bermuda-based Accenture expects its full-year operating margin to be at the lower end of its previously guided range of 13.4 percent to 13.7 percent.

Shares rose 21 cents to close at $31.64, but climbed $1.36, or 4.3 percent, to $33 in after-hours electronic trading following the report.