Accenture Beats Profit Expectations, To Record $425 Million Charge For Terminating Pension Plan

Accenture PLC reported Thursday fiscal second-quarter earnings that fell to $876.7 million, or $1.33 a share, from $1.39 billion, or $2.08 a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.30. Total revenue for the quarter to Feb. 28 rose 4% to $8.76 billion from $8.40 billion, as a 5% increase in net revenue offset a 2% decline in reimbursements. The FactSet total revenue consensus was $8.77 billion. Looking ahead, the consulting firm said it expects 2017 revenue growth in the range of 6% to 8%, compared with a previous outlook of 5% to 8%. The company lifted its EPS outlook to $5.70 to $5.87 from $5.64 to $5.87. Separately, Accenture said it expects to record a $425 million charge in connection with the termination of its U.S. pension plan. The stock, which slumped 2% in premarket trade, has gained 8% year to date, while the S&P 500 has advanced 4.9%.