Infosys, Wipro ADRs drop 2-4% after Accenture cuts FY24 revenue guidance
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American Depository Receipt (ADR) shares of India’s top information technology (IT) majors Infosys and Wipro traded lower on Wall Street on March 21 after Accenture slashed revenue growth guidance for FY24 amid uncertain economic environment that prompts clients to reduce spending on consulting services.
At 11:59 am Eastern Time (ET), Wipro ADR was trading two per cent lower on the New York Stock Exchange (NYSE) at $5.86 while Infosys ADR was trading 3.9 per cent lower at $18.34.
Consequently, this will keep IT stocks under investors radar on March 22 after the Nifty IT index broke its four-day losing streak today with the US Federal Reserve maintaining its rate cut projections for 2024.
Accenture slashes FY24 revenue guidance
Accenture now expects the full-year revenue growth in the range of one per cent to three per cent, from its earlier forecast of two per cent to five per cent. The company has been struggling with sluggish demand for its IT and consulting services over high interest rates.
Accenture reported revenue of $15.80 billion, slightly lower than analysts’ estimate of $15.84 billion. On an adjusted basis, the company earned $2.77 per share, compared with an estimate of $2.66 per share.
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Published: 21 Mar 2024, 09:47 PM IST
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