Accenture PLC emblem is seen on a smartphone in entrance of displayed similar emblem on this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration
March 17 (Reuters) – IT consulting agency Accenture Plc on Thursday forecast current-quarter income above Wall Avenue estimates and flagged a possible affect to its enterprise if the continuing Russia-Ukraine battle continued.
The upbeat forecast, which didn’t embrace the affect from the warfare, helped drive shares 2.4% greater in early buying and selling.
Earlier this month, Accenture stated it was discontinuing enterprise in Russia. Income from the nation stood at about $120 million throughout fiscal 2021, a fraction of its total income of $50.53 billion within the yr. learn extra
Chief Monetary Officer KC McClure informed analysts the forecast took under consideration the income affect of discontinuing its enterprise in Russia and the price of winding it down.
Nevertheless it was tough to foretell the affect of the warfare because it was nonetheless very early, and therefore the forecast “doesn’t take note of any important escalation or growth of financial disruption or the advanced present scope,” she added.
The corporate expects current-quarter income between $15.70 billion and $16.15 billion, in contrast with analysts’ common estimate of $15.11 billion, in keeping with Refinitiv IBES information.
Sanctions and different measures imposed on Russia in response to its actions in Ukraine have elevated the extent of financial and political uncertainty, Accenture stated.
The corporate, whose shoppers embrace greater than three-quarters of the Fortune International 500 firms throughout communications, media & know-how in addition to monetary providers industries, can also be strategically investing in cloud, acquisitions and partnerships to realize extra market share.
Income for the second quarter stood at $15.05 billion, in contrast with analysts’ common estimate of $14.65 billion, in keeping with Refinitiv IBES information.
On an adjusted foundation, the corporate earned $2.54 per share, above analysts’ common estimate of $2.39 per share.
Reporting by Tiyashi Datta in Bengaluru; Modifying by Shinjini Ganguli
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