08:46 AM EDT, 06/20/2024 (MT Newswires) -- Accenture ( ACN ) tightened its full-year revenue outlook on Thursday on the back of lower-than-expected fiscal third-quarter results, but demand for generative artificial intelligence helped the consulting firm log double-digit growth in new bookings.

The company's adjusted earnings declined 2% to $3.13 per share for the May quarter, just shy of the Capital IQ-polled consensus of $3.15. Revenue edged down to $16.47 billion from $16.56 billion a year earlier, missing the Street's view of $16.54 billion. Consulting revenue declined 3% to $8.46 billion, while sales in the managed services division rose 2% to $8.01 billion.

New bookings advanced 22% to $21.06 billion, comprising of $9.28 billion in the consulting segment and $11.78 billion in managed services. Bookings related to Accenture's ( ACN ) generative AI offering were more than $900 million for the quarter, taking its sales tally to $2 billion for the technology so far this fiscal year. The stock climbed 8.6% in premarket activity.

"Leading in (generative AI) positions us to help our clients take the actions needed to reinvent and to benefit from (generative AI), which frequently means large-scale transformations," Chief Executive Julie Sweet said during an earnings call, according to a Capital IQ transcript. "We're also taking an early lead with an eye toward long-term leadership in this critical technology."

The company now anticipates revenue to increase by 1.5% to 2.5% in local currency for fiscal 2024, compared with its previous guidance for a 1% to 3% gain. Adjusted EPS are set to be in a range of $11.85 to $12 versus the prior forecast of $11.97 to $12.20. The Street is looking for normalized EPS of $12.09 and revenue of $65.43 billion.

Foreign exchange is projected to 0.7% headwind on the company's results, compared with previous expectations for the impact to be flat.

"Our client spending developed differently than we expected at the beginning of the fiscal year," Sweet said. "And these conditions continue with clients prioritizing large-scale transformations, which convert to revenue more slowly while limiting discretionary spending, particularly in smaller projects with delays in decision-making and a slower pace of spending as well."

For the ongoing three-month period, Accenture ( ACN ) expects revenue to be between $16.05 billion and $16.65 billion, with foreign-currency to have a negative impact of 2%. In local currency, the guidance reflects a growth range of 2% to 6%. Analysts currently estimate revenue of $16.56 billion for the quarter.

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