Why Is Accenture Stock Falling Today?

Accenture Plc ACN reported second-quarter fiscal 2024 sales of $15.80 billion compared with the consensus of $15.84 billion, flat Y/Y in U.S. dollars and local currency. 

Revenues were slightly above the midpoint of the company’s guided range of $15.40 billion – $16.00 billion. Adjusted EPS of $2.77 beat the consensus of $2.66.

Revenues for the quarter reflect a negative foreign exchange impact of approximately 0.5%, consistent with the assumption in the company’s first-quarter earnings release. 

New bookings for the quarter were $21.6 billion, with consulting bookings of $10.5 billion and managed services bookings of $11.1 billion.

Adjusted operating income for the quarter was $2.16 billion, or 13.7% of revenues, versus 13.8% in the second fiscal 2023.

Products revenues reached $4.76 billion, an increase of 1% in U.S. dollars and flat in local currency. Health & Public Service revenues increased by 10% in U.S. dollars and local currency to $3.33 billion.

Financial Services revenue reached $2.81 billion, down by 6% in U.S. dollars and local currency. Resources revenue was $2.24 billion, an increase of 3% in U.S. dollars and 4% in local currency.

Communications, Media & Technology revenue was $2.65 billion, a decrease of 8% in U.S. dollars and 7% in local currency.

Accenture’s quarterly cash dividend of $1.29 per share is payable on May 15, 2024, for shareholders of record at the close of business on April 11, 2024. 

Q3 FY24 Outlook: Accenture expects revenues of $16.25 billion – $16.85 billion (versus consensus of $17.01 billion), or negative (1)% – positive 3% in local currency, reflecting the company’s assumption of a negative (1)% foreign-exchange impact compared with the third quarter of fiscal 2023.

Accenture expects fiscal 2024 adjusted EPS of $11.97 – $12.20 (prior $11.97 – $12.32) versus consensus of $12.24. For fiscal 2024, the company expects revenue growth of 1% – 3% (prior 2% – 5%) in local currency vs. $66.18 billion consensus.

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

The stock gained 35% in the last 12 months. Investors can gain exposure to the stock via ETC 6 Meridian Quality Growth ETF SXQG and Exchange Listed Funds Trust Bancreek U.S. Large Cap ETF BCUS.

Price Action: ACN shares are down 8.75% at $347.14 on the last check Wednesday.

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