Accenture (ACN) posted earnings and revenue for the fiscal second quarter that exceeded expectations on Thursday. In the midst of its acquisition frenzy, the company’s guidance for the current quarter came in above expectations, driving ACN stock up.
Before the market opened today, Accenture stock gained 4.8 percent to 340.50, signifying a return above its 50-day and 200-day moving averages.
Accenture reported a 14 percent increase in quarterly earnings to $2.54 for the quarter ended February 28. The worldwide tech consulting and services firm reported a 24 percent increase in sales to $15 billion, including acquisitions.
“The outperformance was mostly due to the outsourced business ($6.72 billion vs. $6.55 billion forecast), while the consulting business ($8.32 billion vs. $8.28 billion estimate) was only marginally stronger,” said Jefferies analyst Surinder Thind in a report.
Accenture was anticipated to earn $2.37 per share on $14.65 billion in revenue, according to analysts. Accenture made $2.23 per share on revenues of $12.09 billion a year ago, including investment gains.
ACN Stock: Guidance Exceeds Expectations
Accenture forecasts sales in the range of $15.70 billion to $16.15 billion for its fiscal third quarter. Revenue was expected to be $15.16 billion, according to analysts.
Revenue growth in local currency for fiscal 2022 is now expected to be in the range of 24 percent to 26 percent, up from 19 percent to 22 percent previously.
Accenture recently revealed that its Russian revenue in fiscal 2021 was barely $120 million. In addition, due to the Ukraine conflict, the corporation has ceased activities in Russia.
In addition, amid the volatility in tech markets, ACN stock has fallen by 21% in 2022.
Accenture continues to buy companies in order to expand its digital, cloud, and cybersecurity offerings. It has also made investments in artificial intelligence and blockchain.
According to IBD Stock Check-up, the stock had a Relative Strength Rating of 76 going into the Accenture earnings announcement.
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For updates on 5G wireless, artificial intelligence, cybersecurity, and cloud computing, follow Reinhardt Krause on Twitter at @reinhardtk tech.
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