Accenture plc Sales Grew 15% in the Second Quarter

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Business consulting giant Accenture (NYSE: ACN) reported results early Thursday morning. The report covered the second quarter of fiscal year 2018, and showed solid growth across all of Accenture's business lines and geographic regions.

Here's a closer look at some key details from this report.

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Accenture's second-quarter results: The raw numbers

Metric

Q2 2018

Q2 2017

Year-Over-Year Change

Net revenue

$9.59 billion

$8.32 billion

15%

Net income attributable to Accenture

$901 million

$877 million

3%

GAAP earnings per share (diluted)

$1.37

$1.33

3%

Excluding the impact of unique non-cash tax charges in this quarter, related to the sweeping tax code revision, Accenture's earnings would stop at $1.58 per diluted share. That's a 19% increase over the year-ago period's $1.33 per share.

What happened with Accenture this quarter?

In the second quarter, Accenture delivered positive sales growth in all five of its reportable segments. The communications, media, and technology division led the pack with a 15% year-over-year revenue boost, while health and public service trailed with a 6% sales improvement.

In geographic terms, North America and Europe saw 8% and 10% annual sales growth, respectively. Accenture's so-called growth markets earned their name with a 15% sales jump, though that category represents just 18% of total sales and remains Accenture's smallest geographic region.

"The New," which is an umbrella term for Accenture's cloud computing, information security, and digital services, showed "strong double-digit growth." These operations accounted for 55% of Accenture's overall sales in the second quarter, right in line with the first-quarter reading.

What management had to say

Nanterme, in a conference call with analysts, went on to highlight some recent contract wins for digital media services and Asian banking mergers, before turning back to a culture of innovation that informs everything Accenture does:

Looking ahead

Management expects Accenture's revenue growth to moderate somewhat in the second half of 2018, resulting in a full-year growth rate of roughly 8% in local currency. To give you a point of reference, sales increased 10% in the first half when counted in local currencies. More specifically, third-quarter sales should land near $10 billion, give or take $100 million.

On the bottom line, full-year earnings should rise approximately 13% in 2018 and land near $6.65 per diluted share. This estimate is an adjusted figure, excluding the impact of one-time tax charges in the second quarter. Accenture did not provide any specific earnings target for the third quarter.

Beyond that, Accenture will continue to lean on The New, focusing its efforts and budgets on growing operations under that growing and profitable umbrella.

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Accenture. The Motley Fool has a disclosure policy.