Shares of professional services major Accenture (NYSE:ACN) are tanking today after the company announced its second-quarter results and scaled back its financial outlook for the full year. In Q2, revenue contracted marginally by 0.1% year-over-year to $15.8 billion. The figure lagged expectations by $50 million. EPS of $2.77, on the other hand, fared better than estimates by $0.11. Notably, Accenture has clocked new generative AI bookings worth $1.1 billion in the first half of FY2024.
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During the second quarter, new bookings stood at $21.6 billion, indicating a year-over-year decline of 2%. While Consulting revenues declined by 3% to $8.02 billion, revenues from managed Services ticked up by 3% to $7.78 billion. Despite an essentially flat top line, the consulting giant managed to increase its operating income by 5% to $2.05 billion.
Separately, Accenture has declared a quarterly cash dividend of $1.29 per share. The ACN dividend is payable on May 15 to investors of record on April 11. For the upcoming quarter, Accenture expects revenue to be in the range of $16.25 billion to $16.85 billion.
Revised Expectations
For the full Fiscal year, Accenture has scaled back its revenue growth expectations to a range of 1% to 3% from the prior outlook of 2% to 5% growth. Adjusted EPS for the year is seen landing between $11.97 and $12.20. It previously estimated adjusted EPS for 2024 in the range of $11.97 to $12.32.
Is ACN Stock a Good Buy?
Today’s price erosion comes after a nearly 50% rally in the company’s share price over the past year. Overall, the Street has a Moderate Buy consensus rating on Accenture alongside an average ACN price target of $402.59. However, analysts’ views on the company could see changes following today’s earnings report.
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