Salem Radio Network News Thursday, October 21, 2021

Science

Accenture expects strong Q1 as Delta variant delays return-to-work plans

(Reuters) -IT consulting firm Accenture on Thursday forecast first-quarter revenue above analysts’ estimates, expecting strong demand for its cloud and security services as companies delay return to offices due to the Delta variant.

Shares of the Dublin, Ireland-based company, which has benefited from pandemic-related restrictions as more enterprises took their businesses online, rose nearly 3% in premarket trading. The shares have gained nearly 28% this year.

Demand for IT consulting services has been on the rise as the surging Delta variant of the coronavirus pushed several companies to extend their work from home policies and adopt hybrid work models.

Accenture which has clients including Fortune Global 500 companies across industries such as health and financial services and media, has made a number of acquisitions over the year to cater to this growing demand.

Accenture expects current-quarter revenue to come in between $13.90 billion and $14.35 billion, topping Wall Street estimates of $13.51 billion, according to Refinitiv IBES data.

It said revenue growth was expected in the range of 12% to 15% for fiscal 2022.

Total revenue rose about 24% to $13.42 billion in the fourth quarter, in line with analysts’ expectation of $13.42 billion.

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

(Reporting by Tiyashi Datta in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)

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