Accenture shadow over IT street: Dim growth forecast drags down ADRs of Indian tech firms

Nasdaq-listed IT services major Accenture on Thursday lowered the upper end of its annual revenue growth forecast and projected weaker-than-expected fourth-quarter revenue, triggering a sharp decline in its shares in pre-market trading and weighing on Indian IT stocks despite reporting third-quarter results broadly in line with expectations.

The Dublin-headquartered company now expects annual revenue growth of 3-4% in local currency, compared with its earlier guidance of 3-5%. It also forecast fourth-quarter revenue of $17.75 billion to $18.4 billion, below Bloomberg estimates of $18.47 billion.