Accenture Q3 Results: Will disappointing revenue forecasts pull Accenture share price lower?
Accenture Q3 results: Key insights
- Accenture raised concerns of falling spending by clients on IT services.
- Accenture reported a 3% rise in third quarter revenues at $16.6 billion, while its net profit expanded from $1.8 billion to $2 billion for the quarter ended May 2023.
- Accenture reported new bookings worth $17.2 billion, an increase of 2%
- Accenture declared a quarterly cash dividend of $1.12 per share. ‘
- Accenture’s lower-than-expected revenue forecast for the upcoming quarters hurt investor sentiment.
Accenture share price and Accenture results:
Accenture shares dropped 2% on June 22, 2023 and dropped 1% in pre-market trading on June 23, 2023. However, the stock has risen about 38% so far this year along with several technology shares amid hopes of easing interest rates and general optimism around artificial intelligence and cloud computing.
Accenture share historical performance: (H2)
| 1 Day | 1 Month | 1 Year | 5 Years |
| -2% | 5% | 5% | 85% |
(Data as on June 23, 2023)
Decoding Accenture Q3 earnings:
Accenture Revenue
- Accenture’s third quarter revenue rose 3% to $16.6 billion.
- Accenture forecast current-quarter revenue in the range of $15.75 billion to $16.35 billion. Analysts on average expect revenue of $16.35 billion, according to Refinitiv data.
- North America - Accenture's biggest market - also performed poorly in the March to May period, with revenue growth slowing there to a near three-year low of about 2%.
| Q3FY23 | Q3FY22 | % change | |
| Total Revenue | $16.6 billion | $16.2 billion | 3% |
Accenture net profit
In Accenture’s fourth quarter, it reported a profit of $1.54 billion, or $6.05 a share, compared with a profit of $558 million, or $2.13 a share, in the same period a year earlier on account of heavy cost reduction tactics.
| Q3FY23 | Q3FY22 | % change | |
| Net Profit | $2 billion | $1.8 million | 11% |
Accenture dividend
Accenture declared a quarterly cash dividend of $1.12 per share.
Accenture share price target
- Renowned brokerage Morgan Stanley cut down its share price target on the stock to $340 from $350.
- Renowned brokerage BMO cut its share price target to $355 from $365.
- Brokerage TD Cowen downgrades the share price to market perform to outperform.
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.