Accenture raises revenue forecast for the third time

By Sai Sachin R

REUTERS - Accenture Plc raised its full-year revenue forecast for the third time, reflecting rising demand for the company's consulting and outsourcing services from firms looking to cut costs.

The company also reported third-quarter profit and revenue above analysts' estimates, helped by growth in its digital business and a rise in revenue from North America.

Shares of Accenture rose as much as 2.5 percent to a record high of $100.25 in morning trade.

Accenture raised its full-year revenue growth forecast to 9-10 percent on a local currency basis.

In March, the company forecast revenue to grow 8-10 percent in the year ending August. Accenture raised its revenue growth forecast to 5-8 percent in December from 4-7 percent.

"We are clearly benefiting from our recent investments across the different dimensions of our business in digital services, where we grew more than 30 percent in local currency in the (third) quarter," Chief Executive Pierre Nanterme said in a statement on Thursday.

Accenture's digital business offers analytics, content management, social media and cloud services, among other services.

"The company's momentum remains very strong, with very solid broad-based growth ... they're very well positioned for the increasing demand for digital services," Atlantic Equities analyst Christopher Hickey said.

For the full year, the company also forecast a smaller negative impact than it had previously estimated from currency fluctuations.

The company's net revenue increased marginally to $7.77 billion in the third quarter ended May 31, from a year earlier.

Analysts on average had expected revenue of $7.45 billion, according to Thomson Reuters I/B/E/S.

Excluding items, the company earned $1.30 per share, above the average analyst estimate of $1.23 per share.

Revenue in Accenture's outsourcing business rose 10 percent in local currency, while consulting business revenue rose 11 percent.

The consulting business accounts for a little more than half of Accenture's total revenue, with its outsourcing unit contributing the rest.

Accenture's business in North America rose 11 percent to $3.64 billion.

Accenture's rivals include India's Infosys Ltd and Tata Consultancy Services in the outsourcing business and Hewlett-Packard Co and IBM Corp in the consulting business.

(Additional reporting by Abhirup Roy in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel)