Accenture plc (NYSE:ACN) Q1 2018 Earnings Conference Call Transcript

Dec 21, 2017 • 08:00 am ET

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Accenture plc (NYSE:ACN) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to Accenture's First Quarter Fiscal 2018 Earnings Call. (Operator Instructions) As a reminder, today's call is being recorded.

Your hosting speaker today, MD, Head of IR, Angie Park. Please go ahead.

Executive
Angie Park

Thank you, Kevin, and thanks, everyone, for joining us today on our first quarter fiscal 2018 earnings announcement. As the operator just mentioned, I'm Angie Park, MD, Head of IR. With me today are Pierre Nanterme, our Chairman and CEO; and David Rowland, our CFO. We hope you've had an opportunity to review the news release we issued a short time ago.

Let me quickly outline the agenda for today's call. Pierre will begin with an overview of our results. David will take you through the financial details, including the income statement and balance sheet for the first quarter. Pierre will then provide a brief update on our market positioning before David provides our outlook for the second quarter and full fiscal year 2018. We will then take your questions before Pierre provides a wrap-up at the end of the call.

As a reminder, when we discuss revenues during today's call, we're talking about revenues before reimbursements or net revenues.

(Forward-Looking Cautionary Statements)

Now let me turn the call over to Pierre.

Executive
Pierre Nanterme

Thank you, Angie, and thanks, everyone, for joining us today. We had an excellent first quarter, and I'm extremely pleased with our results. We delivered strong and broad-based revenue growth across all dimensions of our business and gained significant market share once again. Our strategy continues to differentiate Accenture in the marketplace. And we are seeing very strong demand for our services, particularly in digital, cloud and security. Here are a few highlights for the quarter.

We delivered very strong new bookings of $10 billion. We generated revenues of $9.5 billion with 10% growth in local currency. We delivered very strong earnings per share of $1.79, a 13% increase. Operating margin was 15.6% consistent with the first quarter last year. We generated strong free cash flow of nearly $900 million. And we returned more than $1.4 billion in cash to shareholders through share repurchases and dividends.

So we are off to a strong start in fiscal year '18, and I feel very good about the continued momentum in our business. Now let me hand over to David, who will review the numbers in greater detail. David, over to you.

Executive
David Rowland

Thank you, Pierre. Happy holidays to all of you, and thanks so much for joining us on today's call. Building further on Pierre's comments, we were very pleased with our quarter one results, which position us well to achieve our full year business outlook, especially as it relates to our strong and broad-based top line growth. Once again, these results demonstrate the durability and resiliency of our growth model and the high degree of relevance and differentiation of our capabilities in the marketplace.

Before I get into the details of the quarter, let me summarize a few of the