Accenture turned in a less-than-desired quarterly earnings report after the bell on Thursday.
The tech services firm reported a third fiscal quarter net income of $810.3 million, or $1.25 a share (statement). Non-GAAP earnings were $1.14 cents a share (excluding a benefit related to reorganization liabilities) on a revenue of $7.2 billion.
Wall Street was expecting Accenture to report earnings of $1.13 a share on revenue of $7.42 billion.
Shares were down by approximately 5.5 percent after the news hit.
Chairman and CEO Pierre Nanterme defended Accenture's third quarter while acknowledging the revenue miss in prepared remarks:
We continue to make targeted investments to further differentiate our industry and technology capabilities, to add new skills, and to seize the opportunities in key growth areas. With our focused strategy and diverse portfolio of business, we remain confident in our ability to continue to drive profitable growth and deliver value to our clients and shareholders.
For the outlook, Accenture is predicting a revenue of $6.7 billion to $7.0 billion at the end of the fourth fiscal quarter.
But Wall Street wants Accenture to report earnings of $1.08 a share on revenue of $7.36 billion.
Accenture also cut its annual outlook from a net revenue growth range of five to eight percent down to three to four percent.
That lowers the in-house EPS forecast for the entire fiscal year to fall between $4.90 and $4.94, compared with its previous guided range of $4.89 to $4.97.