Accenture on Thursday reported fiscal third-quarter earnings that missed estimates amid discontinued operations in Russia. ACN stock dipped as revenue guidance came in below expectations and currency exchange rates impacted the company's outlook.
ACN stock dipped 0.2% to close at 285.83 on the stock market today.
Accenture earnings for the quarter ended May 31 rose 16% to $2.79 per share, said the Dublin-based firm. The company has discontinued operations in Russia amid the Ukraine war, which lowered earnings by 15 cents. Including acquisitions, revenue rose 27% to $16.2 billion, Accenture said.
Analysts expected Accenture earnings of $2.86 a share on sales of $16.04 billion. A year earlier, Accenture earned $2.40 a share, including investment gains, on sales of $13.26 billion.
"At a segment level, the outsourcing business ($7.13 billion vs. $6.96 billion estimated) was responsible for the beat as the consulting business ($9.03 billion vs. $9.15 billion) came in just shy of our expectations," Jefferies analyst Surinder Thind said in a note to clients.
ACN Stock: Revenue Guidance Misses Estimates
At Susquehanna Financial, analyst James Friedman said in his note: "Although Accenture inked 18 new $100 million-plus deals this quarter, this declined from the 36 wins in fiscal Q2. Consequently, new bookings of $17 billion for the quarter slipped from $19.6 billion last quarter."
For its fiscal fourth quarter, Accenture said it expects revenue in the range of $15 billion to $15.5 billion. Analysts had projected revenue of $15.85 billion.
In addition, ACN stock has retreated some 31% in 2022 amid volatility in tech stocks.
Accenture continues to make acquisitions to move into digital, cloud and cybersecurity products. It also has invested in artificial intelligence and blockchain technology.
Heading into the Accenture earnings report, the stock had a Relative Strength Rating of 58, according to IBD Stock Check Up.
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns for issues such as ACN stock is one key to the investment guidelines.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
