Business Process Outsourcing (BPO) and consultancy company Accenture said in its latest statement that it’s expecting profits by cutting operating costs to show improvement for this fiscal year.
This company has faced too much pricing pressure during its huge business spending and tight competition in the first three quarters against Tata Consultancy Services and Infosys Ltd of India. For the fiscal year to end in August of 2015, Accenture is forecasting that the company would have an operating margin of 14.4% to 14.6%, which should be higher than the 2014 fiscal year which ended in August 31st for around 10-30 basis points.
According to the company’s Chief Financial Officer David Rowland, the contract profitability of Accenture has been a lot better during the third quarter than the second as the fourth quarter compared to the third. Rowland added that there’s been a development seen in payroll efficiency, but added that there is still so much work to do for the company.
The forecasted profit of Accenture for the next fiscal year is $4.74 to $4.88 per share, which is already included 2% hit which relates to the variations in the rate of currencies.
Also, Accenture said that it’s expecting more new contracts for this fiscal year around $34-$36 billion compared to last full year’s $35.88 billion.
Analysts expected that Accenture would have a profit of $1.10 per share or total revenue for a full year of $7.6 billion. The net income of the company for the fourth quarter was $1.08 per share or $760 million, while for the entire fiscal year’s net income, it increased from $7.09 billion to $7.78 billion with much of the help coming from new contracts.
Today’s morning trading on the New York Stock Exchange didn’t show any change in the shares of the company which was at $79.59.
