Accenture forecast third quarter revenue above estimates

The Dublin, Ireland-based company expects current-quarter revenue of between $15.70 billion and $16.15 billion, compared to analysts’ average estimate of $15.11 billion, according to Refinitiv IBES data.

The IT consulting firm’s shares rose nearly 5 per cent in premarket trading. The stock has fallen about 22% so far in 2022.

Possible effects from the Russo-Ukraine War

Accenture said its operations could be adversely affected if Russia’s invasion of Ukraine escalates, as sanctions on Moscow increase the level of economic and political uncertainty.

The firm said its forecast “does not include assumptions for a significant growth or expansion of economic disruption or the current scope of conflict.”

Earlier, Accenture said it would close its business in Russia in response to the country’s invasion of Ukraine. The company’s revenue in Russia during fiscal year 2021 was $120 million.

The firm said it would support its employees in Russia, where it has about 2,300 employees. It does not operate in Ukraine.

New bookings for the second quarter stood at $19.6 billion, driven by demand for its cloud and security-related services as more businesses switched to hybrid work models.

Analysts also suggest that the enterprise software market, which includes players such as Oracle and Salesforce, is showing a more positive trend in client spend.

Revenue for the second quarter stood at $15.05 billion, compared to analysts’ average estimate of $14.65 billion, according to Refinitiv IBES data.

Accenture, whose clients include more than three-quarters of Fortune Global 500 firms in the communications, media and technology as well as financial services industries, is strategically investing in cloud acquisitions and partnerships to capture more market share. Is.

with agency input