Accenture on Friday reported fiscal first-quarter earnings and revenue that topped Wall Street targets. But revenue guidance came in below expectations as currency exchange rates impacted the company's outlook, and ACN stock sank.
Accenture earnings for the quarter ended Nov. 30 rose 11% to $3.08 per share, said the Dublin-based tech services and consulting firm. Including acquisitions, revenue climbed 5% to $15.7 billion, Accenture said.
Analysts expected Accenture earnings of $2.92 a share on sales of $15.58 billion. A year earlier, Accenture earned $2.78 a share, including investment gains, on sales of $14.96 billion.
For its fiscal second quarter, which ends in February, Accenture said it expects revenue in a range of $15.2 billion to $15.75 billion. Analysts had projected revenue of $15.62 billion. At the midpoint, Accenture's outlook is slightly below expectations.
For full-year fiscal 2023, the company now expects diluted earnings to be in the range of $11.20 to $11.52 a share, an increase of 5% to 8%. Accenture earlier had predicted earnings in a range of $11.09 to $11.41 a share.
ACN Stock Falls In Premarket Trades
The company has stated that acquisitions generally boost revenue by 2.5%.
ACN stock fell 5.9% to close at 264.48 on the stock market today.
In addition, ACN stock has retreated some 32% in 2022 amid the bear market in technology 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, ACN stock had a Relative Strength Rating of 50, according to IBD Stock Check Up.
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