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- Accenture reported better-than-expected results thanks to increased AI-driven bookings.
- US sales fell, but rose across markets foreigners of the company. New bookings increased, with a big gain for AI-related ones.
- Accenture's current quarterly guidance missed estimates due to slowing client discretionary spending.
Shares of Accenture (ACN) swung between gains and losses in early trading Tuesday after the professional services company beat profit and sales estimates thanks to gains in artificial intelligence bookings ( AI), but gave weaker-than-expected forecasts as customers cut spending. ;
The Dublin-based company reported earnings of $3.27 per share in the first quarter of fiscal 2024, with revenue up 3% from last year for reach 16.22 billion dollars. Both were above expectations.
Sales increased by 9% in the Europe, Middle East and Africa segment, and by 2% in growth markets. They fell by 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. Additionally, it recorded over $450 million in new bookings related to generative AI.
Accenture expects fiscal second quarter revenue to be in a range of $15.40 to $16 billion. Analysts expected $16.25 billion.
Sweet explained that ;Accenture saw a continued decline in discretionary spending, which negatively impacted its consulting work.
The actions of Accenture were 0.4% lower at $340.43 per share around 12:30 p.m. AND. They added about a quarter of their value in 2023.
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Source: investopedia.com
