Dec 19 Accenture Plc's second-quarter
forecast disappointed investors as the outsourcing and
consulting company's clients deferred discretionary spending in
Europe, sending its shares down 5 percent in after-market trade.
Accenture forecast second-quarter revenue of between $6.9
billion and $7.15 billion. Analysts on average had estimated
During the just-concluded first quarter, revenue from
Europe, Middle East and Africa (EMEA) fell 6 percent to $2.82
billion, the company said. EMEA accounted for nearly 41 percent
of Accenture's revenue last fiscal.
Overall revenue inched up 2 percent to $7.22 billion, but
was short of analysts' average estimate of $7.29 billion.
"The root cause of the revenue weakness is clients showing a
slow spending pace on small and mid-sized consulting deals,"
Sanford Bernstein analyst Rod Bourgeois said.
Revenue from the company's communications, media and
technology business fell 5 percent to $1.46 billion. The decline
was most pronounced in the EMEA region where clients continued
to defer investments, Chief Financial Officer Pamela Craig said
on a conference call with analysts.
Consulting revenue fell 3 percent to $3.96 billion during
the quarter ended November.
However, outsourcing revenue rose 9 percent to $3.26 billion
during the first quarter.
Net income rose to $766 million, or $1.06 per share, from
$712 million, or 96 cents per share, a year earlier. Analysts
were looking for $1.04 per share, according to Thomson Reuters
The company's shares were down 4 percent at $67.65 in
after-market trading on Wednesday.