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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