Accenture Shares Rise on Stronger Outlook
Shares in technology consulting firm Accenture Ltd. rose on Wednesday (NYSE: ACN), one after the company posted strong second quarter the day before, beating estimates and raising its yearly outlook.
The company posted second-quarter net earnings of $296.7 million, or 47 cents a share, up from $69.7 million, or 11 cents a share in the same period a year ago. Analysts polled by Thomson Financial had forecast second-quarter earnings of 42 cents.
We achieved revenue growth across every dimension of our business and double-digit earnings growth, William D. Green, Accenture's chairman and CEO said in a statement.
For its third quarter, Accenture forecast net revenue of $4.9 billion to $5.1 billion. The Hamilton, Bermuda-based company had forecast second-quarter net revenue of $4.6 billion to $4.8 billion. Accenture also estimated net earnings per share of $1.80 to $1.85 for its 2007 fiscal year.
Despite a targeted wage increase and investments in growth initiatives, operating profitability continues to exhibit resiliency benefiting from the company's focus on efficiency, SG&A, utilization, and pricing, Goldman Sachs' Julio C. Quinteros, Jr. told investors on Wednesday.
Accenture shares rose $1.29, or 3.6 percent, to $37.51 in afternoon trading on the New York Stock Exchange.
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