Capgemini tightens annual income steering, outlook cautious
By Enrico Sciacovelli
(Reuters) -French IT consulting agency Capgemini tightened its full-year income steering on Wednesday, whereas citing warning amid tender demand and an unsure financial setting.
The agency, whose companies vary from cloud and AI to enterprise administration throughout a wide selection of industries, now estimates full-year income development at fixed foreign money in a spread of -1% to +1%, in comparison with the earlier estimate of between -2% and a couple of%.
It additionally authorised a multi-year share buyback program of two billion euros ($2.3 billion).
“Going into Q3, we see some stability within the setting, whereas we retain our cautious stance to account for the uncertainty created by geopolitical tensions and a gradual financial system,” CEO Aiman Ezzat stated in a press release.
Capgemini’s working revenue for the primary half of the 12 months fell 15% year-on-year to 976 million euros.
Revenues stood at 11.11 billion euros, down 0.3% on a reported foundation however up 0.2% at fixed alternate charges. Demand was tender within the first half as purchasers slashed non-essential spending, the corporate stated.
Analysts at Jefferies stated in a notice that the second-quarter figures had been strong “however towards a backdrop of sentimental sub-sector newsflow, we doubt the outcomes are adequate to materially change investor sentiment.”
Shares in Capgemini rose as a lot as 6.9% at market open, however paired positive aspects and had been up 0.3% at 0805 GMT.
The group reiterated its full-year working margin estimate within the 13.3% and 13.5% vary and stated its targets don’t embody the affect of the proposed acquisition of expertise outsourcing agency WNS.
In July, Capgemini agreed to purchase U.S.-listed WNS for $3.3 billion in money to develop the vary of AI instruments it presents for corporations.
($1 = 0.8659 euros)
(Reporting by Enrico Sciacovelli, further reporting by Tristan Veyet; Modifying by Mrigank Dhaniwala and Matt Scuffham)
