The share price of Accenture experienced a significant decline after the company reduced its full-year sales growth estimate down from 1% to 3%.
The global IT major’s share price plummeted almost 9% at the New York Stock Exchange (NYSE) in response to Accenture’s poor projection, which also caused a decline in the ADR (American Depository Receipt) shares of Indian IT heavyweights like Wipro, TCS, HCL and Infosys.
Accenture has been dealing with slow demand for its IT and consulting services, so it updated its forecast for revenue growth for the entire year. The findings also suggest that there is economic turbulence in international markets, which has a significant impact on consultancies and has resulted in layoffs or hiring freezes.
Morgan Stanley stated that there are concerns over the pace of the revenue recovery for Indian IT as well as Accenture’s reduction in its fiscal year outlook and cautious remarks.
