Strong Q3 results for Accenture – CASINOIN -Sports betting at the casinoin betting company,casinoin online betting, casinoin bookmaker line, casinoin bookmaker bonuses, casinoin bookmaker, casinoin bookmaker, casinoin sports betting, casinoin bookmaker, casinoin bookmaker,

Accenture reported strong revenue growth of 27% in c/c in Q3FY22, beating the upper end of guidance. Growth was strong all round. Order book growth was good but lower than revenue growth at 15% in c/c. FY2022 revenue growth guidance was raised to 25.5-26.5%. Headcount addition was modest. Management indicated no change in decision-making and expects strong bookings and revenue growth in Q4FY22. Results were strong, though the focus of the Street has shifted to impact on business in a recessionary environment.

Strong broad-based revenue growth; moderate bookings growth

Accenture reported 27% c/c revenue growth and 22% in reported terms to $16.2 bn in Q3FY22 (May 2022 ending quarter). Revenue growth was strong across geos and verticals. Growth was led by CMT and products verticals that grew 31% each. Growth was good in financial services (24%) and health & public services (19%). Consulting grew 30%, while outsourcing grew 23%. Interestingly, segments which were perceived to be vulnerable delivered well—Europe (30% in c/c, helped partly by acquisitions) and products segments. EBIT margin increased by 10 bps y-o-y. Bookings growth was steady at 10% in reported terms and 15% in c/c.

Revenue guidance increased again; EPS guidance cut due to Russia effect

Accenture increased revenue growth guidance once again to 25.5-26.5% from 24-26% earlier, which was impressive. The guidance increase is large enough noting that just one quarter remains for completion of FY2022. EPS guidance was cut to $10.61-10.7 from $10.61-10.81, due to additional cross-currency headwinds and loss on disposition of Russia operations ($96.2 mn hit). Revenue growth guidance for Q4FY22 at 20-24% is remarkably strong. Management has also guided for strong order bookings.

Moderate growth in bookings

Bookings grew 10% to $17 bn (15% in c/c). In reported terms, consulting bookings grew 13.5%, while outsourcing was a lot more sedate at 6.1%. Book to bill ratio on LTM basis was 1.1 in consulting and 1.2 in outsourcing. We note that 15% c/c/ bookings growth, off a high base of 40% growth in the previous year, is a reasonably good outcome. In any case, the company has guided for solid bookings growth in Q4FY22.

No change in decision-making cycle

Demand is strong with no change in the decision-making cycle. The nature of conversations has changed depending on the industry served. For example, cost focus has increased in consumer goods industries.

Read-through from the results

The immediate impact of a deteriorating environment is not visible from the results or decision-making of clients. In fact, Accenture increased revenue growth guidance, reported stronger growth in Europe and delivered better growth in bookings in consulting (considered to be more vulnerable). In a way, the results and outlook are as good as it gets, especially in the context of lowered expectations, visible in 12% correction in stock price in the past three months (46% correction from the peak).

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Author: Howard Caldwell