Information Technology Services & Consulting Giant Accenture Stock Slides After Q1 Performance - Here's Why

Accenture Plc ACN reported Q1 FY24 sales of $16.22 billion compared with the consensus of $16.20 billion, an increase of 3% Y/Y in U.S. dollars and 1% in local currency. The management guidance stood at $15.85 billion-$16.45 billion.

Revenues for the quarter reflect a positive foreign-exchange impact of approximately 1.5% compared with the positive 2.5% impact previously assumed. 

Adjusting for the actual foreign exchange impact, the company’s guided range for quarterly revenues was approximately $15.70 billion to $16.30 billion. Accenture’s first quarter fiscal 2024 revenues were at the top end of this adjusted range.

New bookings for the quarter were $18.4 billion, with consulting bookings of $8.6 billion and managed services bookings of $9.8 billion.

Adjusted operating income for the quarter was $2.70 billion, or 16.7% of revenues, an expansion of 20 basis points from the first quarter of fiscal 2023.

Also Read: Accenture Invests In AI Talent: Adds Ammagamma To Strengthen European AI Capabilities.

Products revenues reached $4.86 billion, an increase of 4% in U.S. dollars and 1% in local currency.

Health & Public Service revenues increased 13% (12% in local currency) to $3.38 billion.

Financial Services sales reached $3.03 billion, up 2% in U.S. dollars and flat in local currency.

Q2 FY24 Outlook: Accenture expects revenues of $15.40 billion to $16.00 billion (versus consensus of $16.25 billion), or negative 2% to 2% in local currency, reflecting the company’s assumption of a negative 0.5% foreign-exchange impact compared with the second quarter of fiscal 2023.

Accenture reaffirms FY24 adjusted EPS guidance of $11.97-$12.32 versus consensus of $12.23. For FY24, the company expects revenue growth of 2%-5% in local currency.

For fiscal 2024, the company continues to expect operating cash flow of $9.3 billion to $9.9 billion and free cash flow of $8.7 billion to $9.3 billion. 

Price Action: ACN shares are down 1.71% at $335.99 during the premarket session on the last check Tuesday.

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