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Key Takeaways
- Accenture posted better-than-expected results as AI-related bookings increased.
- Sales in the U.S. fell, but they rose in the company’s overseas markets. New bookings climbed, with a big gain in those related to AI.
- Accenture’s current quarter guidance missed estimates as client discretionary spending slowed.
Accenture (ACN) shares wavered between gains and losses in early trading Tuesday after the professional services company beat earnings and sales estimates on gains in artificial intelligence (AI) bookings, but gave weaker-than-expected guidance as clients pulled back on spending.
The Dublin-based company posted a profit of $3.27 per share in its first quarter fiscal 2024, with revenue up 3% from a year ago to $16.22 billion. Both were above forecasts.
Sales increased 9% in the Europe, Middle East, and Africa segment, and 2% in growth markets. They fell 1% in North America. New bookings jumped 14% from the third quarter to $18.45 billion.
CEO Julie Sweet noted that the company had 30 clients with quarterly bookings of more than $100 million. In addition, it had more than $450 million in new bookings related to generative AI.
Accenture predicts revenue in the second fiscal quarter will be in a range of $15.40 billion to $16 billion. Analysts had been anticipating $16.25 billion.
Sweet explained that Accenture was seeing a continuing decline in discretionary spending, which negatively impacts its consulting type of work.
Shares of Accenture were 0.4% lower at $340.43 per share as of about 12:30 p.m. ET. They’ve added about one-quarter of their value in 2023.
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