This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Accenture Tumbles as Sales Miss Estimates, Badly

Stocks in this article: ACN IBM

NEW YORK ( TheStreet) - Accenture shares plummeted after announcing less-than-expected revenue. Accenture (ACN - Get Report) lost 10% to close at $71.95 on Friday.

Revenue fell short of analysts' forecasts for the quarter, which ended in May. While bookings increased year over year by 14%, "the duration of bookings continues to lengthen out, limiting the near-term benefit to revenue," wrote Bank of America analysts. The lack of "short-term discretionary projects" caused revenues to fall 3%, or $50 million, short of predictions.

Accenture experienced favorable business conditions in the United States and China, where outsourcing services were required, but faced softness in Brazil and Southern Europe as well as the resources and mining sectors. Wells Fargo trimmed their price target range as to address the softness in the market at the moment, from $80.00 - $83.00 to $78.00 - $81.00.

"Strong client relationships, global reach, cost efficient delivery, and what we view as a strong balance sheet and significant positive cash flow primarily directed to regular share repurchase and dividends make the shares an attractive long-term quality investment, in our view," wrote Wells Fargo analysts in a report, led by Senior Analyst Ed Caso.

Accenture's quarter ends a month before competitors, such as IBM, and is seen as an indicator of the information service sector. IBM (IBM ) lost 2%, trading Friday at $191.71.

Written by Robert Arenella in New York

>To contact the writer of this article, click here: Robert Arenella.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,187.87 -228.98 -1.31%
S&P 500 2,002.75 -18.50 -0.92%
NASDAQ 4,650.2560 -33.1510 -0.71%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs