Accenture forecasts shortfall in 2nd quarter revenues
Global consultancy and outsourcing services firm Accenture is expecting its revenue to fall by over 5% for the second quarter, significantly below analysts’ estimates. The decrease is attributed to decelerating global growth and macro-economic uncertainties. The firm said its revenue forecast was also impacted by a stronger dollar, because the firm gets about half of its revenue from outside the United States. It has now forecast US$10.10 billion to US$10.40 billion, including a 4% hit from foreign exchange. The estimate fell short of the US$10.32 billion midpoint expectation of analysts. With traditional IT services in decline, the firm has been able to compensate in part with strong growth in digital, cloud and security-related services. These services the company refers to as “The New,” and are now its major growth driver, accounting for over 60% of its total sales. To also strengthen its digital and cloud services and stave off competition, Accenture has spent billions of dollars on acquisitions in the past five years.
