Accenture's second-quarter forecast disappoints investors

Thu Dec 20, 2012 5:28am IST

Related Topics

Stocks

   

REUTERS - Accenture Plc's (ACN.N) second-quarter forecast disappointed investors as the outsourcing and consulting company's clients deferred discretionary spending in Europe, sending its shares down 5 percent in after-market trade.

Accenture forecast second-quarter revenue of between $6.9 billion and $7.15 billion. Analysts on average had estimated $7.14 billion.

During the just-concluded first quarter, revenue from Europe, Middle East and Africa (EMEA) fell 6 percent to $2.82 billion, the company said. EMEA accounted for nearly 41 percent of Accenture's revenue last fiscal.

Overall revenue inched up 2 percent to $7.22 billion, but was short of analysts' average estimate of $7.29 billion.

"The root cause of the revenue weakness is clients showing a slow spending pace on small and mid-sized consulting deals," Sanford Bernstein analyst Rod Bourgeois said.

Revenue from the company's communications, media and technology business fell 5 percent to $1.46 billion. The decline was most pronounced in the EMEA region where clients continued to defer investments, Chief Financial Officer Pamela Craig said on a conference call with analysts.

Consulting revenue fell 3 percent to $3.96 billion during the quarter ended November.

However, outsourcing revenue rose 9 percent to $3.26 billion during the first quarter.

Net income rose to $766 million, or $1.06 per share, from $712 million, or 96 cents per share, a year earlier. Analysts were looking for $1.04 per share, according to Thomson Reuters I/B/E/S.

The company's shares were down 4 percent at $67.65 in after-market trading on Wednesday. (Reporting by Neha Alawadhi in Bangalore; Editing by Sreejiraj Eluvangal)

FILED UNDER:

Tech Wrap

Reuters Showcase

Markets Weekahead

Markets Weekahead

Column - Caution advised in a trader’s market  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

GDP Revised

GDP Revised

Economic growth revised up by almost 50 percent  Full Article 

Australian Open

Australian Open

Hingis wins Australian Open mixed doubles title with Paes   Full Article 

Houston's Daughter

Houston's Daughter

Bobbi Kristina Brown revived after found unresponsive in tub  Full Article 

India Art Fair

India Art Fair

Art fair turns India's capital into art hub.  Full Article 

Movie Review

Movie Review

"Rahasya" is an ode to Agatha Christie.  Full Article 

Review: Hawaizaada

Review: Hawaizaada

Movie Review: Hawaizaada  Full Article | Related Story 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage