Accenture (NYSE: ACN) has reported financial results for the third quarter of fiscal 2020, ended May 31, 2020, reporting revenues of $11.0 billion, a decrease of one percent over the same period last year, the company announced on Thursday.
“In times of crisis, our laser focus on creating value for our clients, our ability to deliver mission-critical services for the world’s leading companies, and our unwavering commitment to our people and to living our core values inside and outside Accenture make a difference,” Julie Sweet, Accenture’s chief executive officer.
Accenture’s diluted earnings per share were $1.90, compared with $1.93 for the third quarter last year and its operating income was $1.71 billion, compared with $1.72 billion for the same period last year, and operating margin was 15.6%, an expansion of 10 basis points.
The company’s new bookings for the quarter were $11.0 billion, with consulting bookings of $6.2 billion and outsourcing bookings of $4.8 billion. Accenture’s Revenues for the third quarter of fiscal 2020 were $11.0 billion, compared with $11.1 billion for the third quarter of fiscal 2019.
Revenues for the quarter reflect a foreign-exchange impact of approximately negative 2.5 percent, compared with the negative 1.5 percent impact we had previously assumed. Consulting revenues for the quarter were $6.0 billion, a decrease of 4 percent compared with the third quarter of fiscal 2019.
Accenture’s outsourcing revenues were $5.0 billion, an increase of 3 percent compared with the third quarter of fiscal 2019 and Diluted EPS for the quarter were $1.90 compared with $1.93 for the third quarter last year.
The company’s gross margin for the quarter was 32.1 percent, compared with 31.8 percent for the third quarter last year. Accenture’s selling, general and administrative (SG&A) expenses for the quarter were $1.82 billion.
Operating income for the quarter was $1.71 billion, compared with $1.72 billion, for the third quarter of fiscal 2019. Accenture’s effective tax rate for the quarter was 25.5%, compared with 25.6% for the third quarter last year.
Accenture’s net income for the quarter was $1.25 billion, compared with $1.27 billion for the third quarter last year. Operating cash flow for the quarter was $2.74 billion and property and equipment additions were $150 million.
Free cash flow, defined as operating cash flow net of property and equipment additions, was $2.59 billion for the quarter. For the same period last year, operating cash flow was $2.12 billion; property and equipment additions were $140 million and free cash flow was $1.98 billion.
Days services outstanding, or DSOs, were 41 days at May 31, 2020, compared with 40 days at Aug. 31, 2019 and 39 days at May 31, 2019. Accenture’s total cash balance at May 31, 2020 was $6.4 billion, compared with $5.4 billion at Feb. 29, 2020 and $6.1 billion at Aug. 31, 2019.
About Accenture
Accenture is a leading global professional services company, providing a broad range of services in strategy and consulting, interactive, technology and operations, with digital capabilities across all of these services.
We combine unmatched experience and specialized capabilities across more than 40 industries — powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. With 513,000 people serving clients in more than 120 countries, Accenture brings continuous innovation to help clients improve their performance and create lasting value across their enterprises.
