Accenture revenue misses estimates on lower consulting demand

Reuters News
Posted: Mar 27, 2014 7:13 AM

(Reuters) - Accenture Plc, recently chosen as the lead contractor for the Obamacare enrollment website, reported a smaller-than-expected 1 percent rise in quarterly revenue due to lower demand in its consulting business.

Accenture's net income fell to $722.3 million, or $1.03 per share in the second quarter ended February 28 from $1.19 billion, or $1.65 per share, a year earlier.

Revenue before reimbursements increased 1 percent to $7.13 billion.

Analysts on average were expecting revenue of $7.21 billion, according to Thomson Reuters I/B/E/S.

The company's consulting revenue fell 1 percent, while revenue from the smaller outsourcing business rose 4 percent.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Savio D'Souza)