Accenture revenue forecast tops estimates on cloud, security services demand

Accenture revenue forecast tops estimates on cloud, security services demand
Accenture revenue forecast tops estimates on cloud, security services demand   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By Chavi Mehta</p> <p> -IT consulting firm Accenture Plc forecast better-than-expected second-quarter revenue on Thursday, as more clients seek its cloud and security services, sending its shares up more than 10% in premarket trade. </p> <p>Client spending, which rebounded last fiscal year to pre-pandemic levels due to a shift to hybrid working models, has stayed strong with Accenture reporting robust bookings of $16.8 billion in the reported quarter, up 30% from a year earlier.</p> <p>“This is the direct result of having executed for years a strategy to rotate our business to digital, cloud and security,” Accenture Chief Executive Officer Julie Sweet said. </p> <p>Analysts expect investments in these segments by the company, which hired 50,000 people during the quarter, to generate long-term benefits and help it compete better with peers Cognizant and Infosys for market share in a booming sector. </p> <p>This strong industry-wide growth will likely be sustainable, as the pandemic helped create a multi-year IT spending cycle, Wedbush Securities analyst Moshe Katri said. </p> <p>Shares of the Dublin, Ireland-based company have outperformed the S&P 500 Index this year, thanks to increased spending on digitization and cloud adoption. </p> <p>Accenture now expects full-year revenue to grow between 19% and 22% from 12% to 15% forecast earlier.</p> <p>Revenue for the quarter ended Nov. 30 jumped 27% to $14.97 billion, compared with analysts’ average estimate of $14.19 billion, according to Refinitiv <span class="caps">IBES</span> data.</p> <p>Accenture said it expects current-quarter revenue between $14.30 billion and $14.75 billion, compared with analysts’ average estimate of $14.09 billion. </p> <p>The company earned $2.78 per share during the first quarter. Analysts had expected a profit of $2.63 per share. </p> </div>