Accenture plc raised its outlook for fiscal 2018 as the consulting and outsourcing services provider posted gains in revenue and income for the second fiscal quarter despite a $137 million tax charge related to the recently enacted U.S. tax law.
Net income attributable to Accenture stood at $863.7 million, or $1.37 per diluted share, for the quarter that ended Feb. 28, up from $838.8 million, or $1.33 per diluted share, in the same period last year. The result reflects a 21 cents-per-share tax charge due to tax changes.
Revenues before reimbursements, or net revenues, rose by 15% to $9.59 billion for the quarter from $8.32 billion in the prior-year quarter. Total revenues, which include reimbursements, stood at $10.07 billion, up from $8.76 billion.
Consulting services net revenues rose 17% to $5.16 billion in the second quarter from $4.41 billion, while outsourcing services net revenues came in at $4.43 billion, up 13% from $3.91 billion in the same quarter last year.
The consulting firm now expects fiscal 2018 GAAP diluted EPS to range from $6.61 to $6.70, up from the previous projection of $6.48 to $6.66. Including the 21 cent tax-related charge, the company expects EPS to be in the range of $6.40 to $6.49.
Accenture said it repurchased 5.2 million shares during the second fiscal quarter for a total of $804 million. The company also announced a semiannual cash dividend of $1.33 per share which is payable May 15 to shareholders of record at the close of business on April 12.
"We continue to benefit from the substantial investments we are making to scale our leadership positions in high-growth areas including digital, cloud and security services, which together now account for more than 55 percent of total revenues," Chairman and CEO Pierre Nanterme said.