Accenture early Thursday reported fiscal second-quarter earnings that topped estimates amid its acquisition spree. The company lowered its full fiscal year revenue outlook, sending Accenture stock lower.
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Accenture earnings for the quarter ended Feb. 29 fell 3% to $2.77 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 $2.66 a share on sales of $15.86 billion.
Accenture said it now expects full-year revenue growth in a range of 1% to 3% versus its earlier forecast of 2% to 5% growth.
Accenture Stock: Artificial Intelligence A Bright Spot
On the stock market today, Accenture fell 5.9% to near 357.99. If the move holds through the open, it would mark a sharp drop below support at the stock’s 50-day moving average.
Heading into the Accenture earnings report, shares were up 8% in 2024.
For its third fiscal quarter, which ends in May, Accenture said it expects revenue in a range of $16.25 billion to $16.85 billion. Analysts called for revenue of $17.02 billion.
“The weakness appears to be in consulting,” said Jefferies analyst Surinder Thind in a report. “On a positive note, demand for AI projects continues to accelerate with (fiscal Q2) bookings totaling $600 million, up 50% quarter-over-quarter.”
In 2023, Accenture hiked its quarterly dividend by 15% to $1.29 a share. It also added $4 billion to a stock buyback program.
Meanwhile, Accenture continues to make acquisitions to move into digital marketing, cloud computing services and artificial intelligence.
Further, ACN stock has a Relative Strength Rating of 83 out of a best-possible 99, according to IBD Stock Check Up.
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Follow Reinhardt Krause on X, formerly Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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