Business process solutions firm Conduent misses Q3 revenue estimates

Reuters11-07
Business process solutions firm Conduent misses Q3 revenue estimates

Overview

  • Conduent Q3 revenue declined 5% yr/yr, missing analyst expectations

  • Adjusted EPS for Q3 missed analyst expectations

  • Company completed debt refinancing, enhancing financial stability

Outlook

  • Conduent expects FY 2025 adjusted revenue between $3.05 bln and $3.1 bln

  • Company anticipates FY 2025 adjusted EBITDA margin of 5.0% to 5.5%

  • Conduent focuses on cash generation and expanding pipeline opportunities

Result Drivers

  • PUBLIC SECTOR PERFORMANCE - Strong performance in Public Sector businesses despite Federal government shutdown

  • OPERATIONAL EFFICIENCY - Improved Adjusted EBITDA and margin due to operational efficiency efforts

  • AI INTEGRATION - Deployment of AI in government solutions to enhance efficiency and combat fraud

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$767 mln

Q3 Adjusted Revenue

Miss

$767 mln

$794.33 mln (3 Analysts)

Q3 Adjusted EPS

Miss

-$0.09

-$0.07 (2 Analysts)

Q3 EPS

-$0.30

Q3 Net Income

-$46 mln

Q3 Adjusted EBITDA

$40 mln

Q3 Adjusted EBITDA Margin

5.20%

Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the it services & consulting peer group is "buy."

  • Wall Street's median 12-month price target for Conduent Inc is $7.00, about 68.3% above its November 6 closing price of $2.22

Press Release: ID:nGNXbNp5k4

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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