Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
We were pleased with our overall results in the second quarter with our second highest quarter of new bookings
By once again investing in its people, Mark will be able to continue delivering on its promise to use the power of leading-edge science to save and improve lives around the world
Our results highlight the benefit of the deep trust our clients have in us, our capabilities to do the most complex work at the heart of their businesses, the privileged position we hold within the ecosystem and our ability to invest for the next waves of growth
We continue to see momentum in the quarter and how we are executing on our strategy to be the trusted reinvention partner of our clients, with a record 39 clients with quarterly bookings greater than $100 million
These large transformational wins position us to capture more growth as spending increases
Unlocking the power of edge, data and AI to drive new business opportunities and enhance the customer experience
When we are able to be the first-mover, which we are already starting now to use GenAI and how we deliver, that enhances our competitive position
This platform will be powered by edge to cloud technology, allowing them to collect and analyze real-time data from industrial environments and improve operational efficiencies
This included $10 billion of bookings in North America, our highest ever
So we're really excited about it
We're helping ExxonMobil, an energy super major transform and optimize its end-to-end fuels marketing operations to drive future growth
We are pleased that despite these conditions our focused efforts to return to growth resulted in North America and CMT, showing improvement over last quarter
Well, first of all, I'm just -- I just want to put out that I'm really pleased with our profitability in the first half of the year and the outlook for profitability for the full year
And that really just speaks to the resilience of our strategy, both in terms of being what Julie has talked about, being where our clients need us and our inorganic strategy to continue to benefit to pivot to scale in new areas of growth
In recognition of the 360 degree value we create, we are proud that we earned the number one position in our industry for the 11th year in a row and number 33 overall in Fortune’s list of the World's Most Admired Companies
And we see that continuing to benefit us as it relates to revenue as they will layer on in the back half of the year
The first is that, our competitive advantage is that we have the ability to invest
That's why you've got the updated guidance, right? But the pace of these larger deals, we feel really good about from a resilience perspective
We are strengthening our partnership with Best Buy, a leading consumer electronics retailer across multiple fronts to reimagine the customer experience, optimize costs and drive growth
By leveraging data and Generative AI, we are helping to transform their contact center operations and improve customer and employee experience
We have a strong track-record of delivering on this strategy
Being the company that can go from strategy to build, to operations, deepen industry and functional expertise, because the strategy and consulting all comes together for this moment to be the partner for reinvention across the enterprise, not just to build the technology, but to use it to reinvent and that's exactly what you see in these results, which is why I'm super confident about the industry and the future
We saw very strong double-digit growth in our security business this quarter
Similarly, in good markets our acquisitions position us to drive our clients' growth agendas by expanding our capabilities in marketing and customer experience with Rabbit's Tale in Thailand and [GIC] (ph) in Singapore, helping clients in Indonesia, capitalize on their fast-growing digital economy
Our ability to invest to fuel our organic growth is a competitive advantage and as our clients continue to transform, we announced earlier this month that we will invest $1 billion over the next three years in Accenture LearnVantage, which will provide comprehensive technology learning and training services to help our clients re-skill and upskill their people
Now you kind of turn the dial a little bit more constraints and that's where we see the budgets being set for calendar year 2024, right? And as you said though, in this environment we're taking market share and we're seeing building momentum on our strategy to be the reinvention partner with a record 39 clients with bookings over $100 million
We continue to see strong demand for digital manufacturing and engineering services
From supply chain to logistics to manufacturing, the new platform will enable more efficient inventory management, quality standardization optimal energy consumption and better customer experiences
I'm pleased with our performance in an uncertain macro
This will enable faster availability of products for customers to have more sales growth and maximum profitability
       

Bearish Statements during earnings call

Statement
Consulting revenues for the quarter were $8 billion, a decline of 3% in both US dollars and local-currency
We also saw continued delays in decision-making and a slower pace of spending
New bookings were $21.6 billion for the quarter, representing a 2% decline in both US dollar and local currency, with an overall book-to-bill of 1.4
Adjusted operating income was $2.2 billion in the second quarter, reflecting an adjusted operating margin of 13.7%, a decrease of 10 basis-points from adjusted operating margin in the second quarter of last year
While our CMT industry group improved this quarter, we continue to see pressure as expected
They set budgets and they've got uncertain macro
In EMEA, revenues declined 2% in local currency with growth in public service, offset by declines in communications and media and banking capital markets
Our clients are navigating an uncertain macro-environment due to economic, geopolitical and industry-specific conditions
Adjusted operating margin of 13.7% decreased 10 basis points, compared to Q2 last year and year-to-date operating margin is flat
But you're right, they do layer-in slower than the smaller deals and we see pressure in the volume of our smaller deals
As we said, we're seeing further constraint on the smaller projects
This was evident in the composition of our new bookings, which came in differently than expected
So you're seeing more of a substitution right now as opposed to, hey, we need to do this, let's add to the budget and that's tied to the uncertain macro, that's putting people constraint
Most of our clients are unable to do that
The tax rate, clearly you lowered guidance just on the tax-rate itself
These risks and uncertainties could cause actual results to differ materially from those expressed in this call
So we're kind of assuming there are the budgets for their calendar year and we see in general, most of this constraint is tied to the uncertain macro
This assumes the impact of FX will be about negative 1% compared to the third quarter of fiscal 2023 and reflects an estimated negative 1% to 3% positive growth in local-currency
So again, we don't see anything sort of different than when you've got an uncertain macro you look around for your discretionary spending and you cut that
These costs decreased operating margin by 70 basis-points and EPS by $0.14 this quarter and operating margin by 150 basis-points and EPS by $0.30 in Q2 of last year
   

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