Despite promising results, Accenture will start cutting staff
The Dublin-based management consulting firm, Accenture, started the day with both good and bad news.
For the second quarter of 2020, the company reported a $1.25 billion net income or $1.90 per share. Analysts were looking for a loss per share of $1.85.
Accenture revenue figures came in at $10.99 billion, topping the $10.72 billion forecasted.
For the next quarter, Accenture expects a revenue that could reach a high of $11 billion, which could range between -3% to +1%. Experts’ outlook is for $10.77 billion.
On a yearly basis, the anticipated EPS is expected to reach a high of $7.70. Analysts project $7.57/share. At the same time, Accenture lowered the revenue growth forecasts to a high of 4.5%, from a previous 6%.
On the other hand, the company is getting ready to cut 25,000 jobs from its total of 500,000 due to the pandemic. During challenging times, Accenture growth fell to 1.3% from an initial 8%. Now, the growth rate is set at 5%. But, despite the lack of growth, Accenture purchased 20 companies so far this year, predominately in the cybersecurity and data analytics sectors.
Following the report, the stock price traded 5.2% higher. In the past three months, Accenture share price gained 29%.
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Sources: thestreet.com, investors.com
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