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Accenture | 10-Q: Quarterly report

Summary by Moomoo AI

Accenture, a leading global professional services company, reported its financial results for the second quarter of fiscal 2024. The company's revenues remained flat at $15.8 billion compared to the same quarter in the previous fiscal year, both in U.S. dollars and local currency. Despite the stagnant revenue, operating margin improved to 13.0% from 12.3% in the second quarter of fiscal 2023. Diluted earnings per share increased by 10% to $2.63, up from $2.39 in the prior year's quarter, with adjusted earnings per share rising 3% to $2.77. Cash returned to shareholders totaled $2.1 billion, including $1.3 billion in share purchases and $813 million in dividends. Accenture's business development saw strong local currency revenue growth in the Health & Public Service sector, with modest growth in Resources and Managed Services. However, this was offset by declines in Communications, Media & Technology and Financial Services. The company continues to focus on digital transformation services, cloud enablement, and cybersecurity-as-a-service to meet client demands. Looking ahead, Accenture anticipates continued economic and geopolitical uncertainty, which may impact client spending and business activity. The company plans to leverage its strengths in technology, industry experience, and global delivery capability to drive growth and enhance services. Accenture's future plans include adapting and expanding services and solutions in response to technological changes and maintaining competitive pricing strategies to manage profitability. The company's financial results are subject to foreign currency exchange rate fluctuations, with the U.S. dollar strengthening against various currencies during the quarter, resulting in unfavorable currency translation. Accenture's workforce grew slightly to approximately 742,000, with a slight increase in annualized voluntary attrition to 13%. The company remains focused on matching skills with client demand and managing compensation costs effectively. New bookings for the quarter decreased by 2% to $21.6 billion, reflecting variability in the volume of new business. The company's operating expenses decreased by 1% compared to the same quarter last year, primarily due to lower labor costs. Accenture continues to manage its borrowing facilities effectively, with a total borrowing capacity of $5.144 billion as of February 29, 2024.

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Accenture | 10-Q: Quarterly report

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