Saturday, December 2, 2023

Tech Services Giant Rises On Earnings Beat

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Accenture (ACN) early Thursday reported fiscal second-quarter earnings and revenue that topped Wall Street targets. ACN stock surged as the company plans to cut 2.5% of its workforce, or about 19,000 jobs.


Accenture earnings for the quarter ended Feb. 28 rose 6% to $2.69 per share on an adjusted basis, said the Dublin-based global tech services and consulting firm. Including acquisitions, revenue climbed 5% to $15.8 billion, Accenture said.

Analysts expected Accenture earnings of $2.49 a share on sales of $15.59 billion. A year earlier, Accenture earned $2.54 a share, including investment gains, on sales of $15.05 billion.

“Accenture’s quarter was highlighted by better-than-expected bookings, notably in consulting,” BMO Capital Markets analysts Keith Bachman said in a note to clients. “We believe we are closer to a bottom in consulting bookings growth though we still acknowledge some related revenue growth uncertainty for fiscal 2024.”

For its fiscal third quarter, which ends in May, Accenture said it expects revenue of $16.4 billion at the mid-point of guidance. Analysts had projected revenue of $16.6 billion.

ACN Stock: Acquisition Spree

As expected, Accenture lowered its fiscal 2023 revenue growth outlook to a range of 8% to 10% in local currency, compared with 8% to 11% previously.

Meanwhile, ACN stock jumped 7.3% to close at 271.66 on the stock market today.

Accenture stock has retreated modestly in 2023.

Also, Accenture continues to make acquisitions to move into digital, cloud and cybersecurity products. It also has invested in artificial intelligence and blockchain technology.

Heading into the Accenture earnings report, ACN stock had a Relative Strength Rating of 32, according to IBD Stock Check Up.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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