Accenture Beats Second-Quarter Estimates
Accenture raised its full-year revenue forecast after reporting a better-than-expected second quarter.
Accenture Plc raised its full-year revenue forecast after reporting a better-than-expected second quarter, reflecting greater confidence in the possibility of lower risk from macroeconomic headwinds such as trade war, global economic slowdown and uncertainties around Brexit.
The company raised its revenue growth guidance for financial year 2019 to 6.5-8.5 percent from 6-8 percent, according to a statement on its website. Its quarterly revenue rose 9 percent year-on-year in constant currency terms and 5 percent in dollar terms to $10.45 billion. That’s higher than its guided range of $10.10-10.40 billion.
Accenture’s revenue from consulting business rose 9 percent year-on-year in constant currency terms and 6 percent in dollar terms at $5.79 billion. Outsourcing revenue rose 9 percent in constant currency terms and 5 percent in dollar terms at $4.67 billion, indicating an improvement in its legacy businesses like infrastructure management services.
The consulting and outsourcing services provider also raised its full-year earnings per share forecast range to $7.18-7.32 from $7.01-7.25.
“These numbers and the upgrade in guidance is a positive and should address increasing street concerns of global macroeconomic impact,” said Harit Shah, analyst at Reliance Securities. “Better-than-expected financial services is highly encouraging.”
A strong quarter for Accenture bodes well for the sentiment of Indian information technology companies as well. Domestic companies witnessed growth in their legacy businesses like banking and financial and infrastructure management services in the third quarter.
Accenture stock is trading up 6 percent from day’s open on NYSE.