Accenture FY 3Q15 Earnings Call Notes

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10% local currency revenue growth

“We delivered strong new bookings of $8.5 billion, bringing us to $25.5 billion year-to-date. We generated very strong revenue growth of 10% in local currency, with growth across all five operating groups and all three geographic regions.”

But only 3% eps growth

“We delivered earnings per share of $1.30 on an adjusted basis, a 3% increase. ”

FX will be a -10% to revenue in FY 4Q

” For the fourth quarter of fiscal ‘15, we expect revenues to be in the range of $7.45 billion to $7.70 billion. This assumes the impact that foreign exchange will be a negative 10% compared to the fourth quarter of fiscal ‘14. For the full fiscal ‘15, based upon how rates have been trending over the last few weeks, we now assume the impact of FX on our results in U.S. dollars will be negative 7.5% compared to fiscal ‘14.”

Still going to drive 5-6% earnings growth

“For earnings per share on an adjusted basis, we now expect EPS for fiscal ‘15 to be in the range of $4.73 to $4.78 or 5% to 6% growth over fiscal ‘14 results.’

Definitely want to make acquisitions

“I mean, we all have been very clear on our acquisition strategy. Do we want to leverage our cash to make acquisition in order to further enhance our capabilities and get more differentiation, the answer is, yes.

We are looking in acquisition in some very specific areas as you know, from deep expertise in consulting and strategy for an industry standpoint to digital native organization to companies with a deep footprint in operations,”

Big headcount of highly skilled people in their digital business

” If you look in this digital space, we have now roughly 28,000 people working in that environment. And this 28 is very interesting because you will see as you might suspect extraordinary, I would call them high calibers. I’m thinking about the business scientist we are hiring. I’m thinking about the PhDs we are hiring to drive algorithm in Accenture Analytics. And I’m thinking as well about some leading edge designers, we all hiring for Fjord, our design group, at Accenture.”

One of hte largest enterprise app developers, strong in analytics

“we are now one of the largest apps, enterprise apps developer in the world. All this apps development is done in our centers from India as an illustration. And they are marvelous app developer from India and we are leveraging part of the global deliver network for digital to deliver apps services. I’m thinking about Analytics we have as well very strong people in our delivery centers, who are everyday doing analytic work from the GDN and from a lower cost location.”

Saw better performance in Brazil because positioned correctly: digital and cloud

“I guess what we see in Brazil, likewise the other markets is our strategy of rotating the Accenture business to be more digital rich and cloud services rich what we turn now to call the new if you will is paying off. So again, all the markets that have a potential issue if you find the right entry point. And today the right entry point around the world is this unique combination of digital-related services and cloud-enabled services. So if you’re digital rich and cloud rich then you have probably the right formula to drive more growth in each and every market.”