Accenture's revenue, profit top estimates on digital services growth

(Reuters) – Accenture Plc’s (ACN.N) quarterly profit and revenue topped Wall Street targets, as the consulting and outsourcing services provider benefited from investments in digital and cloud services.

FILE PHOTO – Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona, February 26, 2013. REUTERS/Albert Gea/File Photo

Accenture said on Thursday its digital, cloud and security-related services, which it calls “the New,” made up more than 55 percent of revenue, a record level.

Accenture has spent more than $3 billion over the last three years — nearly half of it in fiscal 2017 — on some 70 acquisitions, as it boosts its digital and cloud-related offerings to compete better with Cognizant (CTSH.O) and IBM (IBM.N).

Net income attributable to the company rose to $863.7 million in the second quarter ended Feb. 28 from $838.8 million a year earlier. It reported earnings of $1.37 per share in the latest quarter.

Results included a $137 million charge related to the new U.S. tax code.

Net revenue jumped 15.2 percent to $9.59 billion.

Excluding one-time items, the company earned $1.58 per share.

Analysts on average had expected revenue of $9.31 billion and earnings of $1.49 per share, according to Thomson Reuters I/B/E/S.

Accenture said it expects current-quarter revenue between $9.90 billion and $10.15 billion, easily topping analysts’ estimates of $9.68 billion.

The company’s shares were down 1.25 percent at $160 in premarket trading.

Reporting by Arjun Panchadar in Bengaluru; Editing by Sai Sachin Ravikumar