Accenture Sees Strong 2012, Lifts Gloom

Accenture reported market-beating quarterly results, and the technology outsourcing and consulting company forecast a strong 2012, allaying fears of an industry-wide slowdown triggered by a slowing US economy and debt crisis in Europe.

Accenture said though the global economy has turned more volatile and uncertain, increased regulations and the need to adapt to globalisation will drive spending for its services.

“Our clients continue to take steps to adjust to this new environment and this continues to drive demand for our services”, Chief Executive Pierre Nanterme said on a conference call with analysts.

Grand Canal Harbour, Ireland-based Accenture said its new bookings – a key indicator of future sales – of $8.4 billion in the fourth quarter was the company’s highest quarterly bookings ever. The company said bookings will remain strong based on strength in outsourcing.

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“The visibility that we have right now (on budgets) is very good based on the first few months,” Chief Financial Officer Pamela Craig said on the conference call.

Accenture’s FY guidance of $27-$28 billion indicates its visibility that capital budgets would not seem cut too much, said Morningstar Inc analyst Swami Shanmugasundaram.

Craig, however, added that the current strengthening of the US dollar could end up as a headwind to actual dollar growth in the fiscal year.

Accenture forecast full-year earnings of $3.80-$3.88 per share, above analysts’ average expectations of $3.76 per share, according to Thomson Reuters I/B/E/S. It forecast full-year revenue growth of 7-10 percent, which implies a range of $27.3-$28.05 billion, according to Reuters calculations. This was on the higher end of analysts’ average expectations of $27.43 billion.