Accenture forecasts current-quarter revenue below estimates

(Reuters) - Accenture Plc ACN.N on Thursday forecast current-quarter revenue below Wall Street expectations and missed estimates for fourth-quarter sales, hurt by lower spending from clients impacted by the COVID-19 pandemic.

Shares of the company were down nearly 5% in premarket trading.

The company estimates current-quarter revenue to be between $11.15 billion and $11.55 billion, compared with Wall Street estimates of $11.52 billion, according to IBES data from Refinitiv.

The COVID-19 pandemic has ripped through the global economy, leading to a slew of layoffs as companies look to cut costs in order to tide over the fall in demand across industries.

Revenue from digital, cloud and security-related services, which the company calls “the New”, constituted about 70% of its total revenue in the fourth quarter.

Total revenue fell 2% to $10.84 billion in the quarter ended August 31, missing analysts’ estimate of $10.91 billion, according to IBES data from Refinitiv.

Net income attributable to company rose to $1.29 billion, or $1.99 per share, from $1.13 billion, or $1.74 per share, a year earlier.

Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra Eluri