Why Accenture Shares Plunged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Accenture have plunged today by as much as 14% after the company reported fiscal third quarter earnings.
So what: Revenue in the quarter totaled $7.2 billion, with earnings per share of $1.14. Sales were short of the $7.4 billion consensus estimate, although Accenture beat the bottom-line forecast of $1.13 per share. The company said consulting revenues were below internal expectations.
Now what: Accenture also reduced its fiscal 2013 outlook, and now expects revenue growth this year to be 3% to 4%. That's down from the prior forecast of 5% to 8% growth. The company also expects the negative impact of foreign exchange fluctuations to be greater. Raymond James and UBS both downgraded shares following the results.
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The article Why Accenture Shares Plunged originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Accenture. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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