Accenture tops second-quarter estimates, raises profit forecast

  • Accenture raised its full-year profit forecast after reporting better-than-expected second-quarter earnings.
  • The consulting and outsourcing services provider is benefiting from its investments in digital and cloud services.
  • Accenture raised its full-year earnings per share forecast range to $7.18 to $7.32, from $7.01 to $7.25.

Accenture on Thursday raised its full-year profit forecast after reporting better-than-expected second-quarter earnings, benefiting from its investments in digital and cloud services.

The consulting and outsourcing services provider's shares rose 4 percent before the opening bell.

Much of Accenture's recent growth has been driven by digital and cloud services, which include everything from managing clients' social media marketing strategies to helping them migrate to the cloud.

Revenue from digital, cloud and security-related services, which the company calls "the New," constituted more than 60 percent of its total revenue in the second quarter.

Accenture raised its full-year earnings per share forecast range to $7.18 to $7.32, from $7.01 to $7.25.

Net income attributable to the company rose to $1.12 billion, or $1.73 per share, in the quarter ended Feb. 28, from $863.7 million, or $1.37 per share, a year earlier.

Analysts on average had expected a profit of $1.57 per share.

Revenue rose 5.5 percent to $10.45 billion, ahead of estimates of $10.30 billion, according to IBES data from Refinitiv.