Accenture narrows FY revenue growth forecast range on COVID-19 impact

FILE PHOTO: Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona, February 26, 2013. REUTERS/Albert Gea/File Photo

(Reuters) – IT consulting firm Accenture Plc (ACN.N) narrowed its full-year revenue growth forecast range on Thursday as customers curbed spending and delayed projects due to the coronavirus-fueled slump in demand.

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

Accenture, which competes with Cognizant (CTSH.O) and major Indian IT companies such as Tata Consultancy Services (TCS.NS) and Wipro (WIPR.NS), also expects foreign exchange rates to negatively impact its results by 1.5% compared to fiscal year 2019.

The company said it expects fiscal 2020 revenue growth to be between 3.5% and 4.5%, compared with its prior forecast of 3% to 6%.

The online consulting and services provider forecast fourth-quarter revenue between $10.6 billion and $11 billion, below the average analyst estimate of $10.88 billion, according to IBES data from Refinitiv.

Revenue was down nearly 1% to $10.99 billion, edging past average analysts’ estimate of $10.87 billion, according to IBES data from Refinitiv.

Excluding items, the company earned $1.90 per share, beating analysts’ estimates of $1.85 per share.

Shares of the company were marginally down in premarket trading on Thursday.

Reporting by Neha Malara; Editing by Subhranshu Sahu

Source Article