Accenture Cuts Full-Year Revenue Guidance After Posting Flat 2Q Sales

By Will Feuer

Accenture cut its fiscal-year revenue guidance after posting flat sales for its fiscal second quarter, a sign that big companies are still cutting costs and paring demand for consultants.

The professional services company reported a fiscal second quarter profit of $1.67 billion, or $2.63 a share, for the three months ended Feb. 29, compared with $1.52 billion, or $2.39 a share, in the comparable period a year earlier.

Stripping out one-time items, including business-optimization costs, adjusted earnings were $2.77 a share. Analysts surveyed by FactSet expected $2.66 a share.

Revenue held roughly flat at $15.8 billion, below the $15.85 billion that analysts expected.

By industry, soft demand from Communications, Media & Technology clients as well as Financial Services offset strength from Health & Public Service clients.

New bookings for the quarter were $21.58 billion, down 2% from a year earlier. The company said it recorded new generative AI bookings of over $600 million in the quarter.

For the current fiscal year, Accenture cut its revenue guidance and now expects to grow the topline by 1% to 3% in local currency, down from prior guidance of 2% to 5% growth.

The company also narrowed its earnings forecasts for the year and is now targeting adjusted earnings of $11.97 a share to $12.20 a share, narrowed from $11.97 a share to $12.32 a share.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

March 21, 2024 07:24 ET (11:24 GMT)

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