rose 3 per:IT services provider Accenture forecast second-quarter revenue below Wall Street goals on Tuesday, expecting cautious spending by clients as macroeconomic uncertainty remains an overhang.
Shares of the company fell 3 per cent in trading before the bell. They have made over 28 per cent so far this year, outperforming the benchmark S&P 500 index.
Analysts expect IT services spending to remain muted in the near term as businesses typically decide their yearly budgets only after February. Accenture itself had pointed to slower budget-related decision-making, especially in tech and media companies.
India’s IT services giant Tata Consultancy Services reported weaker-than-expected quarterly results in October, while Infosys cut the upper end of its annual revenue forecast as clients were still hesitant to spend on discretionary projects. Both companies are Accenture’s competitors in the outsourcing game.
Accenture forecasts revenue in the range of $15.40 billion to $16.00 billion. Analysts polled by LSEG had forecast sales of $16.29 billion.
Its sales in the first quarter ended Nov.30 cent, to $16.2 billion.