UPDATE 1-Accenture cuts its annual revenue forecast
(Adds shares in paragraph 2, details and background in paragraphs 4 to 6)
March 21 (Reuters) - IT services provider Accenture cut its fiscal-year 2024 revenue forecast on Thursday, as an uncertain economy prompts clients to cut spending on its consulting services.
Shares of the company fell around 5% in premarket trading.
Accenture now expects full-year revenue growth in the range of 1% to 3%, from its prior forecast of 2% to 5%.
The firm has been grappling with sluggish demand for its IT and consulting services as high interest rates and an uncertain economic outlook prompt clients to withhold expenditure.
After elevated client spending during the pandemic, analysts say growth in the industry has been decelerating over the past six quarters.
Accenture also forecast third-quarter revenue in the range of $16.25 billion to $16.85 billion, compared with an estimate of $17.01 billion, according to LSEG data. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Pooja Desai)
