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.)