Accenture Q2 2022 Earnings Report
Key Takeaways
Accenture's Q2 2022 revenues reached $15.0 billion, marking a 24% increase in U.S. dollars and a 28% increase in local currency. EPS was $2.54, a 14% increase. Operating income increased by 25% to $2.06 billion. New bookings hit a record $19.6 billion, up 22% from the previous year.
Revenues are $15.0 billion, an increase of 24% in U.S. dollars and 28% in local currency.
EPS are $2.54, a 14% increase from the second quarter last year.
Operating income increases 25% to $2.06 billion, with operating margin of 13.7%.
Record new bookings of $19.6 billion are up 22% from the second quarter last year.
Accenture
Accenture
Forward Guidance
Accenture expects revenue for the third quarter of fiscal 2022 to be in the range of $15.70 billion to $16.15 billion, an increase of 22% to 26% in local currency. For fiscal year 2022, the company now expects revenue growth to be in the range of 24% to 26% in local currency and diluted EPS to be in the range of $10.61 to $10.81.
Positive Outlook
- Revenue growth to be in the range of 24% to 26% in local currency.
- Operating margin for the full fiscal year to be 15.2%, an expansion of 10 basis points from fiscal 2021.
- Diluted EPS to be in the range of $10.61 to $10.81, an increase of 21% to 23% over adjusted FY21 diluted EPS of $8.80.
- Operating cash flow to be in the range of $8.7 billion to $9.2 billion.
- Free cash flow to be in the range of $8.0 billion to $8.5 billion.
Challenges Ahead
- The invasion of Ukraine by Russia and the sanctions have increased the level of economic and political uncertainty.
- Third-quarter and full-year 2022 business outlook does not include assumptions for a significant escalation or expansion of economic disruption or the conflict’s current scope, which could have a material adverse effect on the company’s results of operations.
- Assumes a negative 4% foreign-exchange impact compared with the third quarter of fiscal 2021.
- Annual effective tax rate to be in the range of 23.0% to 25.0%.
- Foreign-exchange impact on its results in U.S. dollars will be approximately negative 3% compared with fiscal 2021.