Accenture forecasts dip below Wall Street expectations
DUBLIN, IRELAND — IT services giant Accenture’s full-year earnings and first-quarter revenue forecasts fell below Wall Street expectations as high inflation and interest rates continue to impact enterprise spending.
The firm expects its first-quarter revenue to be in the range of $15.85 billion to $16.45 billion, while analysts estimated $16.43 billion. Its forecasted fiscal 2024 adjusted earnings per share also fell between $11.97 to $12.32, below estimates of $12.45.
Accenture‘s shares already dropped by 4.9% in pre-market trading after its Q4 revenues — a modest $200 million — also didn’t meet expectations.
“We have seen greater caution globally with lower discretionary spend, slower decision-making, and in particular for us, a significant impact from the challenges the communications, media, and tech industries (CMT) have faced,” explained Accenture CEO Julie Sweet.
Enterprise Technology Research (ETR) Chief Strategist Erik Bradley added that spending for IT consulting and outsourced IT sectors is decreasing to “extremely low levels.”
Other IT giants are also facing similar challenges. Infosys cut its yearly revenue prediction by half in July, while Tata Consultancy Services (TCS) reported a subdued demand from their clients.
