Information Technology Services & Consulting Giant Accenture Stock Slides After Q1 Performance - Here's Why
Portfolio Pulse from Vandana Singh
Accenture Plc (NYSE:ACN) reported Q1 FY24 sales of $16.22 billion, slightly above consensus of $16.20 billion, with a 3% Y/Y increase in U.S. dollars and 1% in local currency. The company's adjusted operating income expanded to $2.70 billion, or 16.7% of revenues. New bookings were $18.4 billion, with consulting bookings at $8.6 billion and managed services at $9.8 billion. Q2 FY24 revenue is expected to be $15.40 billion to $16.00 billion, below the consensus of $16.25 billion. FY24 adjusted EPS guidance is reaffirmed at $11.97-$12.32, with expected revenue growth of 2%-5% in local currency. ACN shares dropped 1.71% in premarket trading.
December 19, 2023 | 1:16 pm
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Accenture's Q1 FY24 results showed slight revenue growth and an increase in adjusted operating income, but the Q2 revenue outlook is below consensus, which may have led to the premarket stock price decline.
The premarket decline in ACN's stock price is likely due to the Q2 revenue outlook being below market expectations, despite a solid Q1 performance. The reaffirmed EPS guidance suggests stability, but the lower revenue forecast could overshadow this in the short term.
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