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Company beats quarterly estimates of digital and the cloud effect

FILE PHOTO: Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona on February 26, 2013. REUTERS/Albert Gea

(Reuters) – Accenture Plc’s (ACN.(N) beat Wall Street’s estimates for first-quarter earnings on Thursday, as the investment in the fast-growing digital and cloud-based services companies will continue to pay for it.

The IT consulting firm has shifted its focus to the provision of a digital and cloud based services, covering everything from managing clients’ social media marketing strategies in order to help them move to the cloud, in a bid to boost margins.

The company reported a gross margin of 32.1%, compared with 31.1% a year earlier.

The consulting and it outsourcing service provider, forecast a current-quarter revenue between $10.85 billion and $11.15 billion, the midpoint of which is lower than the average analyst estimate of $11.09 billion, according to IBES data, Refinitiv.

Net income attributable to owners of the company, up to a total of $1.36 billion, or $2.09 per diluted share, for the first quarter ended Nov. 30, from $1.27 billion, or $1.96 per diluted share, a year earlier.

The company has earned a quarterly profit of $2.09 per share, above analysts ‘ expectations of $2 per share in cash.

Net sales rose to $11.36 billion, beating estimates of $11.14 billion.

The company’s shares rose 1.03% in premarket trading.

Reporting Amal in Bengaluru; Editing by Krishna Chandra Eluri

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