Shares of Accenture PLC (NYSE: ACN) dropped 3.2% in premarket trading on Tuesday, despite the company reporting fiscal first-quarter earnings that exceeded expectations. However, their full-year profit outlook fell short of investors' expectations.

Financial Performance

For the quarter ending November 30, Accenture's net income reached $1.98 billion, or $3.10 per share, a slight increase from $1.97 billion, or $3.08 per share, in the same period last year. Excluding nonrecurring items, adjusted earnings per share came in at $3.27, surpassing the FactSet consensus of $3.14.

Moreover, the company's revenue grew to $16.22 billion, a 3% increase compared to the prior year and beating the FactSet consensus of $16.17 billion. Consulting revenue remained steady at $8.46 billion, while managed services revenue rose by 6% to $7.77 billion. Additionally, new bookings experienced a notable 14% increase, reaching $18.45 billion, and gross margin improved from 32.9% to 33.6%.

Full-Year Outlook

While Accenture delivered strong Q1 results, their second-quarter revenue forecast of $15.4 billion to $16.0 billion fell short of the current FactSet consensus of $16.25 billion.

Looking ahead to fiscal year 2024, the company maintained their adjusted earnings per share outlook between $11.97 and $12.32. However, this range slightly below the FactSet consensus estimate of $12.24.

Market Performance

Despite today's downturn, Accenture's stock has enjoyed a successful year so far, with a 28.1% increase year-to-date through Monday. In comparison, the S&P 500 index has advanced 23.5%.

Stay tuned for further updates as Accenture continues to navigate the evolving global market landscape.

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