By Chelsey Dulaney
Accenture PLC said Thursday that it will take a
larger-than-expected hit from foreign exchange this year, though
the consulting giant raised its revenue growth target on a local
currency basis.
Shares gained 2.7% in premarket trading.
For the fiscal year ending in August, Accenture lowered the top
end of its earnings forecast by four cents, excluding a settlement
charge, now calling for a profit of $4.66 to $4.76 a share. The
company said it now expects to see a negative foreign-exchange
impact of 8%, up from its previous assumption for a 5% impact. On a
local currency basis, the company raised its net revenue growth
outlook to a range of 8% to 10%, compared with its previous call
for 5% to 8% growth.
The company also lowered the top end of its earnings forecast by
four cents, excluding a settlement charge, now calling for a profit
of $4.66 to $4.76 a share.
For the current quarter, the company expects net revenue between
$7.35 billion to $7.60 billion., while analysts polled by Thomson
Reuters had forecast revenue of $7.63 billion. The guidance assumed
a 11% negative impact from foreign exchange.
Accenture's earnings have grown steadily in recent years, while
its outsourcing and consulting businesses have enjoyed strong
growth. Accenture was tapped last year to help fix the embattled
HealthCare.gov and in December said it won a five year $563 million
contract to continue its work on the federal insurance site.
For the fiscal second-quarter ended Feb. 28, the consulting
unit's net revenue grew 4% to $3.84 billion. Revenue from
outsourcing grew 6% to $3.65 billion.
Overall, Accenture reported earnings of $690.7 million, up from
$671.3 million in the prior-year period. On a per-share basis,
which includes income attributable to noncontrolling interests,
earnings rose to $1.08 from $1.03.
Analysts had projected earnings of $1.07 a share in the latest
period.
Net revenues, or revenues before reimbursements, grew 5% to
$7.49 billion, in-line with its expectation for revenue between
$7.25 billion and $7.50 billion. Foreign exchange had a negative
6.5% impact on revenues in the quarter.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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