Accenture's Q3 revenue of $16.2 billion exceeds expectations

24 Jun 2022 , 09:49 AM

On Thursday, June 23, US-based IT giant Accenture released its results for the third fiscal quarter of 2012, surpassing sales projections for the period ending May 31. Accenture reported $16.2 billion in revenues, an increase of 22% from the previous year (YoY).

Operating income for the major IT company increased by 23% to $2.6 billion, and its operating margin was 16.1%. Additionally, the business posted the second-highest bookings ever at $17 billion. Instead of 24-26%, it now anticipates revenue growth for 2022 to be in the range of 25.5-26.5%.

Accenture lowered its sales prediction for the fourth quarter and its profit forecast for the fiscal year 2022. (Accenture follows a September-August financial year).

Instead of the previously anticipated range of $10.61 to $10.81, the business now anticipates profits per share for the fiscal to be in the range of $10.61 to $10.70.

Accenture reported that revenues for the quarter reflect a foreign-exchange effect of -5%, up from the -4% it had expected, amid concerns about excessive inflation. Accenture anticipates revenue for the fourth quarter to be in the $15 billion to $15.5 billion range, assuming a -8 percent foreign exchange effect in comparison to the same time last year.

Accenture stated that it now anticipates the fiscal year’s foreign exchange effect to be -4.5% lower than in 2021. It had previously given this a -3% rating.

Accenture generates more than half of its income outside of the United States, and as the dollar appreciates against other currencies, it reduces the earnings of businesses that must convert local currencies into dollars.

With voluntary attrition at 20%, Accenture’s staff increased by 11,928 for the quarter.

The performance of Indian IT heavyweights is sometimes predicted by Accenture’s earnings. The first quarter of FY23’s profits from Indian IT companies are expected to be released next month. Shares of TCS, Infosys, and other Indian IT companies increased on Thursday ahead of Accenture’s earnings.