declined more than 3% in premarket trading Thursday after reporting quarterly results that included a lower-than-expected revenue estimate.
(ticker: ACN), the management consulting firm, said it expects fiscal fourth-quarter revenue of $13.1 billion to $13.5 billion, which reflects a 4% hit from currency movements compared to the same quarter a year ago. Analysts had expected revenue to reach $15.8 billion, according to FactSet.
Based in Ireland with operations all over the world, Accenture has been hurt by the strengthening of the U.S. dollar as the Federal Reserve raises interest rates. The dollar index has gained 14% this year, reducing the company’s earnings in local currencies for reporting purposes.
Accenture narrowed earnings outlook for the full year to $10.61 to $10.71 a share, compared with a previous range of $10.61 to $10.81. It sees full-year revenue growth between 25.5% and 26.5% in local currencies, compared with 24% to 26% previously.
For the quarter ended May 31, Accenture said new bookings increased 39% to $15.4 billion. Earnings per share were 88 cents, 10% higher than a year ago.
The company said revenue growth for the fiscal year ending Aug. 31 will rise 10% to 11% in local currency terms. It estimates that operating margin will be 15.1%.
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