Accenture expects strong Q1 as Delta variant delays return-to-work plans

IT consulting firm Accenture on Thursday forecast first-quarter revenue above analysts' estimates, expecting strong demand for its cloud and security services as companies delay return to offices due to the Covid-19 Delta variant.

Shares of the Dublin-based company, which has benefited from pandemic-related restrictions as more enterprises took their businesses online, rose nearly 3 per cent in premarket trading. The shares have gained nearly 28 per cent this year.

Demand for IT consulting services has been on the rise as the surging Delta variant of coronavirus pushed several companies to extend their work-from-home policies and adopt hybrid work models.

Accenture, which has clients including Fortune Global 500 companies across industries such as health and financial services and media, has made a number of acquisitions over the year to cater to this growing demand.

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Estimates

Accenture expects current-quarter revenue to come in between $13.9 billion (€11.8 billion) and $14.35 billion, topping Wall Street estimates of $13.51 billion, according to Refinitiv IBES data.

It said revenue growth was expected in the range of 12 per cent to 15 per cent for fiscal 2022.

Total revenue rose about 24 per cent to $13.42 billion in the fourth quarter, in line with analysts’ expectation of $13.42 billion.

Accenture has an office on Dublin’s Grand Canal Square. The company employs more than 5,000 people in the State but plans to increase that number by more than 500 over the next three years.

– Reuters