Accenture Shares Drop as Company Lowers Guidance Amid Sales Slowdown
Introduction
Accenture (ACN) shares took a hit on Thursday as the tech and consulting services provider reported a slowdown in sales and new bookings, leading to a lowered guidance for the current quarter. The company’s CEO, Julie Sweet, attributed the challenges to an uncertain macro environment.
Second-Quarter Fiscal 2024 Performance
In the second quarter of fiscal 2024, Accenture reported revenue of $15.80 billion, a decrease of less than 1% compared to the same period last year. Consulting revenue saw a 3% decline to $8.02 billion, while managed services revenue increased by 3% to $7.78 billion. New bookings were down 2% to $21.58 billion. Despite the overall decrease in revenue, the company’s adjusted earnings per share (EPS) of $2.77 surpassed expectations.
Guidance and Outlook
Looking ahead, Accenture anticipates current-quarter revenue to fall within the range of $16.25 billion to $16.85 billion, which is below analysts’ forecasts. The company also revised its full-year sales growth projection to 1% to 3%, down from the previous estimate of 2% to 5%. Additionally, the top end of the expected adjusted EPS range was reduced to $12.20 from $12.32, compared to the $12.24 expected by analysts.
Dividend Payouts and Share Performance
Despite the challenges faced by the company, Accenture remains committed to rewarding its shareholders. On February 15, Accenture paid out a higher quarterly dividend of $1.29 per share, up from $1.12. Another dividend payout of $1.29 per share is scheduled for May 15 for shareholders of record on April 11.
As of noon ET on Thursday, Accenture shares were trading at $350.35, marking an 8.2% decline. Year-to-date, the stock has gained 0.7%, while over the past 12 months, it has seen an impressive increase of close to 36%.
Conclusion
Despite the challenges posed by a slowdown in sales and new bookings, Accenture remains focused on navigating the uncertain macro environment and delivering value to its shareholders. The company’s revised guidance and outlook reflect its commitment to addressing the current market conditions while continuing to drive growth and innovation in its core business areas.
For more information, you can read the original article on Investopedia.