Accenture forecasts lower current-quarter revenues amid foreign exchange headwinds

Investing.com -- Accenture plc (NYSE:ACN) has said it expects revenues in its current quarter to be lower than the prior three-month period due to negative currency effects, although tailwinds remained from artificial intelligence-related bookings.

The Irish-American IT consultancy and outsourcing service provider forecast revenues in its fiscal second quarter of between $15.40 billion to $16.00 billion, down from $16.22 billion in the quarter ended on Nov. 30.

The second-quarter outlook would amount to a decline of 2% compared to the same timeframe last year, Accenture noted. In local currency, the figures would represent growth of 2% year-on-year.

In a statement, Accenture said the projection reflects a negative 0.5% foreign exchange impact versus the second quarter of its 2023 financial year.

But the company reiterated its guidance for full-year revenue growth in a range of 2% to 5% in local currency. Excluding optimization costs and investment gains, adjusted earnings per share are seen rising by 3% to 6% annually to a band of $11.97 to $12.32.

Shares in Accenture dipped in premarket trading in New York on Tuesday.

The group's communications, media and technology unit slipped by 10% in the latest quarter, in a sign that clients are continuing to rein in expenditures on consultancy services during a time of wider macroeconomic uncertainty. Top-line results at the consulting business, which makes up more than half of total revenue, were flat at $8.46 billion.

This weakness was partly offset by Accenture's managed services division, where revenue expanded by 6% in U.S. dollars to $7.77 billion. In a statement, Chief Executive Julie Sweet also said enthusiasm for generative artificial intelligence helped garner $450 million in new bookings.

"I am pleased that we delivered on our commitments this quarter while strategically investing at scale for future growth," Sweet added.

Total quarterly revenues of $16.22B topped Bloomberg consensus estimates, while adjusted per-share income of $3.27 beat expectations as well.