IT Defense Contractors Slip After Accenture’s Warning

IT defense contractor names underperformed after Accenture said it expects US federal spending cuts on consultants to slow its growth next year.

• Accenture had previously cautioned that President Trump’s push to cut government spending on consultancy firms would hinder its growth; shares were down ~30% in the past year ahead of Thursday’s earnings; read more: Accenture Sees Slower Growth on US Federal Consultancy Cuts
  • Accenture stock was down as much as 2.2% on Thursday
  • Separately, an OMB memo directs agencies to plan to permanently lay off federal workers in programs that do not align with Trump’s priorities if the deadline ...