Accenture forecast disappoints, shares slip

(Reuters) - Consulting and outsourcing company Accenture Plc (ACN.N) forecast first-quarter revenue largely below analysts' expectations as stiff competition from rivals hurt new contracts wins.

Shares of the company, which counts International Business Machines Corp (IBM.N) among its rivals, were down 3 percent at $77.15 in premarket trading.

Accenture forecast first-quarter revenue of $7.55 billion (4.60 billion pounds) to $7.80 billion (4.76 billion pounds).

Analysts on average were expecting $7.80 billion, according to Thomson Reuters I/B/E/S.

The company said it expects $34 billion-$36 billion of new contracts for the year ending August 2015 — largely below $35.88 billion in the previous year.

The company forecast full-year profit of $4.74-$4.88 per share, less than analysts' average estimate of $4.91 per share.

Accenture has faced pricing pressure amid sluggish business spending in the last few quarters.

The company's net income rose to $760.2 million, or $1.08 per share, in the fourth quarter ended Aug. 31 from $727.3 million, or $1.01 per share, a year earlier.

Net revenue increased to $7.78 billion from $7.09 billion.

Analysts had expected a profit of $1.10 per share on revenue of $7.6 billion.

(This version of the story has been corrected to say analysts expected a profit of $1.10 per share, not 1.10 cents, in the last paragraph)

(Reporting By Lehar Maan in Bangalore; Editing by Joyjeet Das)