Accenture forecasts Q3 revenue below estimates at around $16.7 billion

IT services firm Accenture Plc forecast third-quarter revenue below Wall Street estimates on Thursday on worries that budget cuts from recession-wary enterprises will weigh down on its business.

The consulting firm reported adjusted earnings per share of $2.69 for its second quarter ended in February. Revenue came to $15.81 billion, up 9% from the same period the prior year in local currencies.

The company forecast current-quarter revenue in the range of $16.1 billion and $16.7 billion. Analysts on average were expecting revenue of $16.64 billion, according to Refinitiv data. The company now expects annual revenue growth to be in the range of 8% to 10% in local currency, compared to 8% to 11% expected previously.


The company also said it would cut about 19,000 jobs and lowered its annual revenue and profit projections, the latest sign that the worsening global economic outlook was sapping corporate spending on IT services.

Accenture said it now expects earnings per share to be in the range of $10.84 to $11.06 compared to $11.20 to $11.52 previously.