Key insights
- Accenture's weaker-than-expected revenue forecast signals continued caution in enterprise IT spending due to economic uncertainty. This suggests potential headwinds for the broader IT consulting and services sector, which could translate to reduced investment in technology projects and a negative impact on US equity markets, particularly for companies reliant on large-scale digital transformation initiatives.
March 19 (Reuters) - Accenture forecast quarterly revenue below estimates on Thursday, as clients remain cautious on spending on large IT transformation projects amid an uncertain economic environment.
Shares of the Dublin, Ireland-based company were down 3% in premarket trading.
The company has been dealing with a challenging economic environment, with clients delaying large digital transformation projects and favoring cost control and short-term initiatives over broad overhauls.
The company expects fiscal third-quarter revenue between $18.35 billion and $19.00 billion, with the midpoint slightly below analysts' average estimate of $18.72 billion, according to data compiled by LSEG.
The company's revenue rose 8% to $18.04 billion for the second quarter, beating estimates of $17.84 billion.
Accenture reported a profit of $2.93 per share, compared with $2.82 per share in the same quarter last year.
New bookings, a metric that measures future revenue based on contracts, rose 6% to $22.1 billion in the second quarter.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Leroy Leo)