Picture: ISTOCK
Picture: ISTOCK

Accenture’s quarterly profit and revenue topped Wall Street targets, as the consulting and outsourcing services provider benefited from investments in digital and cloud services.

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

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

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

Results included a $137m charge related to the new US tax code. Net revenue jumped 15.2% to $9.59bn. Excluding one-time items, the company earned $1.58 per share.

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

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

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

Reuters