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Accenture's profit slips as costs rise
[BENGALURU] Consulting and outsourcing services provider Accenture Plc reported a smaller quarterly profit on Thursday, hurt in part by higher costs.
Shares of the company were down 2.7 per cent at US$123.11 before the bell.
Operating costs rose 4.3 per cent to US$7.62 billion in the second quarter ended Feb 28.
Accenture has been investing heavily in fast-growing businesses such as digital and cloud services, amid stiff competition from Cognizant Technology Solutions Corp and IBM.
The company forecast current-quarter revenue between US$8.65 billion and US$8.90 billion. Analysts on average were expecting revenue of US$8.80 billion, according to Thomson Reuters I/B/E/S.
Net income attributable to Accenture fell to US$838.8 million or US$1.33 per share in the second quarter, from US$1.33 billion or US$2.08 per share, a year earlier.
Profit in the year-ago quarter was benefited by a US$553.6 million gain on the sale of some businesses.
Accenture's net revenue rose 4.7 per cent to US$8.32 billion, helped by strong demand for its digital, cloud and security-related services, which make up more than 40 per cent of revenue.
Analysts on average had expected second-quarter profit of US$1.30 per share and revenue of US$8.34 billion.