Aug 2 (Reuters) – DXC Technology (DXC.N) on Wednesday posted weaker-than-expected quarterly gross sales and lowered its annual income forecast, because the IT providers supplier grapples with robust competitors and decrease spending from companies frightened a few turbulent financial system.

Shares of the corporate plunged about 15% in prolonged buying and selling.

DXC mentioned it now expects annual income to vary between $13.88 billion and $14.03 billion, in contrast with its prior prediction of $14.40 billion to $14.55 billion.

The firm has confronted stiff competitors in current months from business giants similar to Accenture Plc (ACN.F), whose bigger scale and extra expansive enterprise have given them an edge over the likes of DXC.

The firm additionally generates sizeable income from outdoors the United States which makes it weak to alternate charge fluctuations and geopolitical points in an already unsure market.

For the quarter to June 30, the corporate reported income of $3.45 billion, lacking analysts’ common estimate of $3.56 billion, in response to Refinitiv knowledge.

The firm’s adjusted revenue fell to 63 cents per share within the quarter, in contrast with estimates of 82 cents.

Reporting by Yamini Kalia in Bengaluru; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.