Accenture Sees Higher Q3 Revenues; Cuts FY23 Earnings, Sales Growth View - Update

Professional services company Accenture plc (ACN), while reporting weak profit and higher revenues in its second quarter on Thursday, said it sees higher third-quarter revenues, but trimmed fiscal 2023 forecast for earnings, and revenue growth view.

In pre-market activity on the NYSE, Accenture shares were gaining around 4.3 percent to trade at $264.11.

For the third quarter, Accenture expects revenues to be in the range of $16.1 billion to $16.7 billion, an increase of 3 percent to 7 percent in local currency. The outlook reflects the company's assumption of an approximately negative 3.5 percent foreign-exchange impact compared with the third quarter of fiscal 2022.

On average, 18 analysts polled by Thomson Reuters expect the company to report revenues of $16.64 billion for the next quarter. Analysts' estimates typically exclude special items.

For fiscal 2023, the company now expects earnings per share to be in the range of $10.84 to $11.06, lower than previous outlook of $11.20 to $11.52.

Adjusted earnings per share is expected to be in the range of $11.41 to $11.63, an increase of 7 percent to 9 percent over fiscal 2022 earnings of $10.71. The outlook excludes $0.96 for business optimization costs and $0.39 for an anticipated gain on an investment.

Analysts estimate earnings of $11.45 per share for the year.

Accenture now expects operating margin for fiscal 2023 to be in the range of 14.1 percent to 14.3 percent, compared to 15.3 percent to 15.5 percent expected previously. Adjusted operating margin, which excludes an estimated $800 million for business optimization costs, will be in the range of 15.3 percent to 15.5 percent, an expansion of 10 to 30 basis points from fiscal 2022.

For fiscal 2023, the company now expects revenue growth to be in the range of 8 percent to 10 percent in local currency, compared to 8 percent to 11 percent expected previously.

Accenture further said it continues to expect to return at least $7.1 billion in cash to shareholders through dividends and share repurchases.

In the second quarter, Accenture's bottom line came in at $1.53 billion or $2.39 per share, down from $1.64 billion or $2.54 per share last year. Excluding items, Accenture's adjusted earnings were $1.74 billion or $2.69 per share for the period.

Analysts expected the company to earn $2.50 per share for the quarter.

The company's revenue for the quarter rose 5 percent to $15.81 billion from $15.05 billion last year.

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