Accenture Plc (NYSE:ACN) stock fell 0.86% (As on March 24, 11:13:38 AM UTC-4, Source: Google Finance) after the company would cut about 19,000 jobs and lowered its annual revenue and profit projections, the latest sign that the worsening global economic outlook was sapping corporate spending on IT services. The company also trimmed its annual revenue growth and profit forecasts, amid worries that recession-wary enterprises will cut technology budgets. Recently, the IT services and consulting firm acquired Bengaluru-based industrial artificial intelligence company Flutura. The deal size was not disclosed. Operating cash flow for the quarter was $2.33 billion, and property and equipment additions were $108 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $2.22 billion. For the same period last year, operating cash flow was $2.16 billion; property and equipment additions were $165 million; and free cash flow was $1.99 billion. New bookings for the second quarter of fiscal 2023 were $22.09 billion, a 13% increase in U.S. dollars and a 17% increase in local currency over the second quarter of fiscal 2022.
ACN in the second quarter of fiscal 2023 has reported the adjusted earnings per share of $2.69, beating the analysts’ estimates for the adjusted earnings per share of $2.49. The company had reported the adjusted revenue growth of 9 percent to $15.81 billion in the second quarter of fiscal 2023, beating the analysts’ estimates for revenue of $15.51 billion. Adjusted operating income for the quarter was $2.19 billion, or 13.8% of revenues, an expansion of 10 basis points from the second quarter of fiscal 2022.
The company forecast current-quarter revenue in the range of $16.1 billion and $16.7 billion. Analysts on average were expecting revenue of $16.64 billion, according to Refinitiv data. The company now expects annual revenue growth to be in the range of 8 per cent to 10 per cent in local currency, compared to 8 per cent to 11 per cent expected previously. Accenture said it now expects earnings per share to be in the range of $10.84 to $11.06 compared to $11.20 to $11.52 previously.
During the second quarter of fiscal 2023, Accenture initiated actions to streamline operations, transform non-billable corporate functions and consolidate office space to reduce costs. The company recorded $244 million in business optimization costs during the second quarter and expects to record total costs of approximately $1.5 billion through fiscal 2024. Accenture estimates $1.2 billion for severance and $300 million for consolidation of office space, with approximately $800 million expected in fiscal 2023 and $700 million in fiscal 2024.