Overview
Health solutions provider's Q4 revenue slightly missed analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company plans capital allocation activities to drive long-term shareholder value
Outlook
Company to replace cash dividend with capital allocation activities like deleveraging and share repurchases
Result Drivers
REVENUE DECLINE - Q4 revenue decreased 4% due to lower project revenue and net commercial activity
EXPENSE REDUCTION - Selling, general, and administrative expenses decreased due to lower professional fees and share-based compensation
GOODWILL IMPAIRMENT - Recognized a $803 million non-cash goodwill impairment charge, impacting net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $653 mln | $655.20 mln (8 Analysts) |
Q4 Adjusted EPS | Miss | $0.18 | $0.23 (8 Analysts) |
Q4 Net Income | -$933 mln | ||
Q4 Adjusted EBITDA | Miss | $178 mln | $219.52 mln (7 Analysts) |
Q4 Gross Profit | $240 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Alight Inc is $3.75, about 186.3% above its February 18 closing price of $1.31
The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 5 three months ago
Press Release: ID:nBw6xQ91Qa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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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