Pauls Valley, OK, Pauls Valley Democrat

Community News Network

December 19, 2013

Technology consulting profits beat estimates as big data fuels demand

NEW YORK — Accenture, the second-largest technology-consulting company, reported quarterly profit that topped estimates as demand for its expertise resurfaced in the U.S. and Europe.

Fiscal first-quarter earnings were $1.15 a share, topping the $1.09 average estimate of analysts surveyed by Bloomberg. Net sales rose 2 percent to $7.4 billion, the Dublin-based company said Thursday.

Bookings for consulting rose as customers ramped up investing in projects, with Europe recovering from its debt crisis and the U.S. Congress resolving its budget negotiations. Clients are seeking help on using newer technology like cloud computing and big-data analysis.

"Cloud, social, mobile and analytics -- those are all really important changes going on in the technology landscape," David Grossman, an analyst at Stifel Nicolaus & Co., said in an interview from San Francisco before the earnings release. "Initially, their customers can't implement newer technology without outside help because they don't have the talent or the knowledge base. That's usually good for Accenture."

Accenture raised its profit forecast for 2014 to $4.44 to $4.56 a share, up from the range of $4.42 to $4.54 a share the company gave in September, according to a statement Thursday. The forecast was adjusted to reflect foreign-exchange fluctuations. Analysts surveyed by Bloomberg predict earnings of $4.47 on average.

First-quarter net income attributable to Accenture rose to $751.8 million compared with $698.8 million a year earlier. Earnings per share, which are calculated using a different figure for net income, rose to $1.15 from $1.06.

Contract bookings rose 16 percent from a year earlier, according to data from Bloomberg Industries. Consulting, the company's biggest unit, recorded $4.3 billion in new business in the quarter, while outsourcing orders were $4.4 billion.

Accenture is considered a bellwether for the information- technology market because its earnings cycle ends one month sooner than competitors.

International Business Machines Corp., the largest technology-services provider, is scheduled to announce earnings Jan. 21. Cognizant Technologies Solutions Corp., one of the largest providers of outsourcing services, normally reports quarterly results in February.

 

1
Text Only
Community News Network
Business Marquee

e-Edition
  • How You Want It When You Want It Today's Pauls Valley Democrat

    Now you can view and download the Democrat right to your desktop on the day the paper is published. Click here to get more information on the Democrat's e-Edition.

     

    CLICK HERE TO ACCESS THE E-EDITION SITE

     

    ATTENTION CURRENT DEMOCRAT SUBSCRIBERS TO START an e-EDITION

    e-mail request to sjohnson@pvdemocrat.com

    April 20, 2011 1 Photo 1 Link

AP Video
Judge Ponders Overturning Colo. Gay Marriage Ban Airlines Halt Travel to Israel Amid Violence NYPD Chief Calls for 'use of Force' Retraining VA Nominee McDonald Goes Before Congress Bush: Don't Worry, Sugarland Isn't Breaking Up US Official: Most Migrant Children to Be Removed Police Probing Brooklyn Bridge Flag Switch CDC Head Concerned About a Post-antibiotic Era Raw: First Lady Says `Drink Up' More Water Courts Conflicted Over Healthcare Law Holder Urges Bipartisanship on Immigration Raw: Truck, Train Crash Leads to Fireball US Airlines Cancel Israel Flights Obama Signs Workforce Training Law Crash Victims' Remains Reach Ukraine-held City Diplomatic Push Intensifies to End War in Gaza Cat Fans Lap Up Feline Film Festival Michigan Plant's Goal: Flower and Die Veteran Creates Job During High Unemployment
Stocks
Facebook