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Accenture cuts full-year outlook, shares down

Reuters/ AFR | June 28, 2013
Reports third-quarter revenue below analysts' estimates as consulting income dropped 2 per cent.

Outsourcing and consulting services provider Accenture cut its full-year outlook and reported third-quarter revenue below analysts' estimates as its consulting income dropped 2 per cent.

Accenture shares were down 6 per cent to $US75.30 ($80.98) in extended trading on Thursday.

The company said it now expects adjusted earnings of $US4.18 to $US4.22 per share on revenue growth of 3 per cent to 4 per cent in local currency for the year ending August 31.

The outlook assumed a negative currency impact of 1.7 per cent, up from its 1 per cent expected earlier.

Accenture in March had forecast adjusted annual earnings of $US4.24 to $US4.32 per share on revenue growth below the midpoint of the 5 per cent to 8 per cent range that it had previously expected.

The company recorded consulting net revenue of $US3.9 billion ($4.2 billion) in the three months ended May 31. It had said in March that it expects the business to return to growth.

Outsourcing net revenue rose 4 per cent to $US3.3 billion in the quarter.

"Outsourcing adds resilience to the story," Josh Olson, technology analyst for Edward Jones told Reuters.

Accenture's results could have been worse without the strength in outsourcing, he said.

Net revenue rose 0.6 per cent to $US7.2 billion.

Net income rose to $US874.1 million, or $US1.21 per share, in the third quarter, from $US762.8 million, or $US1.03 per share, a year earlier.

Excluding items, the company earned $US1.14 per share.

Analysts on average had expected earnings of $US1.13 per share on revenue of $US7.42 billion, according to Thomson Reuters.

Accenture shares closed at $US80.22 on the New York Stock Exchange on Thursday.

 

 

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