10:22 AM EDT, 03/21/2024 (MT Newswires) -- Accenture ( ACN ) on Thursday lowered its full-year revenue growth outlook amid macroeconomic uncertainties as the consulting firm's fiscal second-quarter sales fell short of market expectations.

The company expects revenue to increase by 1% to 3% in local currency for fiscal 2024, compared with its previous guidance for a 2% to 5% gain. Adjusted earnings are now set to be in a range of $11.97 to $12.20 per share versus the prior projection of $11.97 to $12.32. The consensus on Capital IQ is for normalized EPS of $12.24 and revenue of $66.2 billion.

"Our clients are navigating an uncertain macro environment due to economic, geopolitical and industry-specific conditions," Chief Executive Julie Sweet said during an earnings call, according to a Capital IQ transcript. Shares of Accenture ( ACN ) fell 6.7% during Thursday's session.

For the three months through Feb. 29, revenue edged down to $15.8 billion from $15.81 billion a year earlier, missing the Street's view of $15.84 billion. Adjusted earnings inclined 3% to $2.77 a share, topping analysts' $2.67 estimate.

"We see clients continuing to prioritize investing in large-scale transformations, which convert to revenue more slowly while further limiting discretionary spending, particularly in smaller projects," Sweet said. "We also saw continued delays in decision-making and a slower pace of spending."

Consulting revenue declined 3% to $8.02 billion, while sales in the managed services division rose 3% to $7.78 billion. New bookings moved down 2% to $21.58 billion, comprising $10.52 billion in the consulting segment and $11.06 billion in managed services.

Bookings related to the company's generative artificial intelligence offering were $600 million for the quarter, taking its sales tally to $1.1 billion for the technology in the first half. The firm's "strong" generative AI bookings reflect Accenture's ( ACN ) "leading position" in the area with its ongoing $3 billion investment, Wedbush Securities said in a client note.

For the ongoing quarter, Accenture ( ACN ) anticipates revenue of $16.25 billion to $16.85 billion, with foreign-currency to have a negative impact of 1%. In local currency, the guidance reflects a range of a 1% decline to 3% growth. The Street is looking for revenue of $17 billion for the period.

Wedbush estimates a quarterly revenue growth uptick to inflect in the May quarter for the company and then accelerate in August, as budget approvals for the 2024 calendar year near completion, potentially at the end of this month.

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