Accenture Cuts Outlook As Q1 Earnings Fall Short, Citing Currency Effects

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December 21, 2016 7:31am NYSE:ACN

From StockNews.com: Accenture Plc (NYSE:ACN) early Wednesday posted disappointing Q1 earnings results and lowered its outlook, citing ongoing effects of a stronger U.S. dollar.


The Dublin, Ireland-based consulting and outsourcing giant reported adjusted Q1 EPS of $1.40, which was $0.09 worse than the average Wall Street estimate of $1.49. Revenues rose 6.3% from last year to $8.52 billion, also missing analysts’ view of $8.59 billion.

Accenture said that total new bookings for the first quarter reached $8.3 billion. Consulting new bookings were $4.9 billion, while Outsourcing new bookings were $3.4 billion.

Looking ahead, ACN forecast weaker-than-expected Q2 earnings results. The company expects Q2 revenues to range from $8.15 to $8.40 billion, which would miss Wall Street’s $8.49 billion estimate.

Accenture also offered downside guidance for full-year 2017. It cut its EPS estimate to a range of $5.64-5.87 from $5.75-5.98, below the average Wall Street estimate of $5.90, citing currency translation effects. Its new revenue outlook of $33.87-34.86 billion would also fall short of analysts’ $35.08 billion view.

The company commented via press release:

“We continue to make significant investments in new and high-growth areas across Accenture — especially digital, cloud and security services, which together now account for more than 40 percent of total revenues and again grew at a very strong double-digit rate in the quarter. With the differentiated, high-value capabilities we are building, we remain confident in our ability to continue driving profitable growth, gaining market share and delivering value for our clients and shareholders.”

Accenture shares fell $2.04 (-1.64%) to $122.06 in premarket trading Wednesday. Prior to today’s report, ACN had gained 18.76% year-to-date, versus an 11.05% rise in the benchmark S&P 500 index during the same period.

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ACN currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 12 in the Outsourcing – Tech Services category.

This article is brought to you courtesy of StockNews.com.


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