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Accenture benefits from AI, but warns business spending slows

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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

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