Accenture's second-quarter forecast disappoints investors
Accenture Plc's 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.
December 20, 2012 / 10:11 IST
Accenture Plc's 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 USD 6.9 billion and USD 7.15 billion. Analysts on average had estimated USD 7.14 billion.During the just-concluded first quarter, revenue from Europe, Middle East and Africa (EMEA) fell 6 percent to USD 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 USD 7.22 billion, but was short of analysts' average estimate of USD 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 USD 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 USD 3.96 billion during the quarter ended November.However, outsourcing revenue rose 9 percent to USD 3.26 billion during the first quarter.Net income rose to USD 766 million, or USD 1.06 per share, from USD 712 million, or 96 cents per share, a year earlier. Analysts were looking for USD 1.04 per share, according to Thomson Reuters I/B/E/S.The company's shares were down 4 percent at USD 67.65 in after-market trading on Wednesday. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
