Home Service company Accenture predicts optimistic earnings as companies embrace hybrid work models

Accenture predicts optimistic earnings as companies embrace hybrid work models

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Accenture CEO Julie Sweet speaks during a meeting with the Economic Club of New York in New York, New York, United States, December 4, 2019. REUTERS / Andrew Kelly

Sep 23 (Reuters) – Computer consultancy firm Accenture (ACN.N) predicts first quarter revenue above analysts’ estimates, expecting strong demand for its cloud and security services as companies delay return to offices and adopt hybrid work models due to the Delta variant.

Shares of the Dublin, Ireland-based company, which benefited from the pandemic restrictions as more companies took their businesses online, rose nearly 1.2% at the start of trading Thursday. Stocks have gained nearly 28% this year.

Demand for IT consulting services has increased as the burgeoning Delta variant of the coronavirus has prompted several companies to expand their work-from-home policies and embrace hybrid work models.

For fiscal 2022, Accenture projects revenue growth of 12-15% and expects to spend a similar amount on acquisitions compared to last year.

“The targeted acquisitions of $ 4.2 billion built into FY22’s forecast are consistent with the company’s nearly 10-year record for acquiring entities that fit into its digital services ecosystem,” said Moshe Katri, analyst at Wedbush.

Accenture, which counts Fortune Global 500 companies in industries such as healthcare, financial services and media among its clients, has invested more than $ 4 billion in 46 acquisitions in 2021 to meet growing demand for its services.

“At the start of fiscal year 21, after investing in the cloud for a decade, we saw that the pandemic would dramatically accelerate our customers’ journey to the cloud,” CEO Julie Sweet told a conference. telephone on the results with analysts.

Total revenue rose about 24% to $ 13.42 billion in the fourth quarter, in line with analysts’ expectations of $ 13.42 billion, according to data from Refinitiv IBES.

On an adjusted basis, Accenture earned $ 2.20 per share, against analysts’ estimates of $ 2.19 per share.

Accenture expects revenue for the current quarter to be between $ 13.90 billion and $ 14.35 billion, compared to $ 13.51 billion according to analysts’ estimates.

Report by Tiyashi Datta in Bangalore; Editing by Shounak Dasgupta and Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles.


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