Accenture's ( ACN) stock took a tumble on Wednesday after it reported a disappointing quarterly profit and one analyst subsequently downgraded the IT services firm. Shares of the company fell off $2.16 -- nearly 7% -- to $28.74 in recent trading. While Accenture beat the Street's earnings expectations and was generally in line with revenue predictions, analysts expressed concern over the company's contracts with the National Health Service in England, which was blamed for the decline in quarterly profit. The company made a $69.7 million profit, or 11 cents a share, a precipitous drop from the $209.8 million, or 35 cents a share, it made in the same quarter a year ago. Earnings included a charge for $450 million in future losses related to delays in implementing systems for NHS. Calling the NHS deals an "albatross around the firm's neck," Needham analyst Jonathan Maietta lowered his rating from buy to hold and wrote that "we expect 2007 losses associated with the NHS contracts to be $10 million to $20 million higher than the $140 million in losses we expect for 2006." He had expected the deal to become profitable in 2007. "We believe that Accenture will try to compensate for the losses by investing less in the business, which could have broader implications, such as reduced employee morale," Maietta wrote. Excluding these contracts, the business is performing well, he wrote, but that won't matter until Accenture restructures the NHS contracts or wins enough incremental business to offset the negative impact from the deals. Maietta trimmed his non-GAAP earnings estimate by 3 cents a share for the second half of fiscal 2006 and cut his 2007 earnings forecast by 4 cents a share to account for margin pressure brought on by the contracts. Needham does investment banking with Accenture.