(Reuters) -IT consulting firm Accenture Plc on Thursday forecast current-quarter revenue above Wall Street estimates and flagged a potential impact to its business if the ongoing Russia-Ukraine conflict continued.
The upbeat forecast, which did not include the impact from the war, helped drive shares 2.4% higher in early trading.
Earlier this month, Accenture said it was discontinuing business in Russia. Revenue from the country stood at about $120 million during fiscal 2021, a fraction of its overall revenue of $50.53 billion in the year.
Chief Financial Officer KC McClure told analysts the forecast took into account the revenue impact of discontinuing its business in Russia and the cost of winding it down.
But it was difficult to predict the impact of the war since it was still very early, and hence the forecast “does not take into account any significant escalation or expansion of economic disruption or the complex current scope,” she added.
The company expects current-quarter revenue between $15.70 billion and $16.15 billion, compared with analysts’ average estimate of $15.11 billion, according to Refinitiv IBES data.
Sanctions and other measures imposed on Russia in response to its actions in Ukraine have increased the level of economic and political uncertainty, Accenture said.
The company, whose clients include more than three-quarters of the Fortune Global 500 companies across communications, media & technology as well as financial services industries, is also strategically investing in cloud, acquisitions and partnerships to gain more market share.
Revenue for the second quarter stood at $15.05 billion, compared with analysts’ average estimate of $14.65 billion, according to Refinitiv IBES data.
On an adjusted basis, the company earned $2.54 per share, above analysts’ average estimate of $2.39 per share.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini Ganguli)
