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HomeMarketAccenture Expects Higher Earnings in 2023. Why the Stock Is Down Anyway.

Accenture Expects Higher Earnings in 2023. Why the Stock Is Down Anyway.

Accenture delivered earnings of $3.08 per share for the first quarter, above Wall Street’s estimates.

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Pau Barrena/AFP via Getty Images

Accenture
reported stronger-than-expected earnings for the quarter and raised its profit forecast for the full year on Friday.

The company, which offers IT consulting and other services, said it expects to generate $11.20 to $11.52 per share in profit in fiscal 2023, which ends in August. The midpoint of the range, $11.36, is below the consensus call of $11.41 among analysts tracked by
FactSet.
Management’s prior expectation was for $11.09 to $11.41 per share.

The stock (ticker: ACN) fell 2.5% in premarket trading on Friday. It is down more than 32% this year.

Accenture
delivered earnings of $3.08 in the first fiscal quarter, above the estimates for $2.92. Revenue of $15.7 billion in the quarter ended in November was slightly above Wall Street’s expectation for $15.6 billion.

The company scheduled a conference call to discuss its results for 8 a.m. Eastern time. One focus was expected to be whether Accenture is witnessing a drop in demand given the weak macroeconomic landscape. Several cloud companies, including CrowdStrike Holdings (CRWD), have said customers are taking longer to make decisions about purchases due to the weakening economy.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com.

Credit: marketwatch.com

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