Accenture on Thursday reported fiscal second-quarter earnings and revenue that topped estimates. ACN stock initially rose on the Accenture earnings report, then reversed down.
Company guidance for the current quarter came in above expectations amid its acquisition spree. Accenture stock fell 1.7% to close at 319.50 on the stock market today.
Accenture earnings for the quarter ended Feb. 28 rose 14% to $2.54, said the Dublin-based company. Including acquisitions, the global tech consulting and services company said revenue rose 24% to $15 billion.
"The outsourcing business ($6.72 billion vs. $6.55 billion) was primarily responsible for the outperformance as the consulting business ($8.32 billion vs. $8.28 billion estimate) was only modestly better," said Jefferies analyst Surinder Thind in a report.
Analysts expected Accenture earnings of $2.37 a share on sales of $14.65 billion. A year earlier, Accenture earned $2.23 a share, including investment gains, on sales of $12.09 billion.
ACN Stock: Guidance Tops Estimates
For its fiscal third quarter, Accenture said it expects revenue of in the range of $15.70 billion to $16.15 billion. Analysts had projected revenue of $15.16 billion.
For fiscal 2022, the company now expects revenue growth to be in the range of 24% to 26% in local currency, compared with 19% to 22% previously.
Accenture recently disclosed that it generated only $120 million in Russian revenue in fiscal 2021. Also, the company has discontinued operations in Russia amid the Ukraine war.
In addition, ACN stock has retreated some 21% 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 76, according to IBD Stock Check-up.
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