Conduent (NASDAQ:CNDT) Announces Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Conduent (NASDAQ:CNDT) posted its earnings results on Thursday. The company reported ($0.11) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.03), FiscalAI reports. The firm had revenue of $534.00 million for the quarter, compared to analysts’ expectations of $545.67 million. Conduent had a negative return on equity of 9.02% and a negative net margin of 8.17%.

Here are the key takeaways from Conduent’s conference call:

• Continuing-operations revenue fell 12% year over year to $534 million, with commercial revenue down 16% amid contract losses and lower volumes, including the departure of its largest commercial client. Adjusted EBITDA improved to $36 million and margin rose 160 basis points to 6.7%.
• Year-to-date new-business ACV was $249 million against a qualified pipeline of about $2.9 billion, but management acknowledged that converting opportunities into wins remains a key challenge. Government awards have been delayed by election-related procurement cycles, extending deal times.
• Conduent completed the $164 million sale of its Public Transit business and expects the Tolling sale to bring total transportation divestiture proceeds to $234 million. It also refinanced its revolving facilities, extending maturity to 2029 and increasing total commitments to $447 million.
• Adjusted free cash flow was negative $117 million in Q3, significantly affected by a temporary pause in factoring; management said normalized factoring would have brought the quarter close to breakeven. The company ended the quarter with approximately $295 million in cash.
• Management reported $55 million realized toward its $120 million cost-savings target and said 2026 guidance remains unchanged at $2.15–$2.25 billion in revenue and $140–$170 million in adjusted EBITDA. It expects margins to reach double digits and positive free cash flow during its three-year plan, though these remain forward-looking targets.

Conduent Trading Down 13.4%

NASDAQ:CNDT traded down $0.22 on Friday, reaching $1.42. The stock had a trading volume of 1,446,512 shares, compared to its average volume of 1,145,236. Conduent has a 12-month low of $1.15 and a 12-month high of $2.12. The company has a market cap of $220.84 million, a price-to-earnings ratio of -0.92 and a beta of 1.47. The firm’s fifty day moving average is $1.61 and its two-hundred day moving average is $1.53. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.55 and a quick ratio of 1.55.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Weiss Ratings restated a “sell (d)” rating on shares of Conduent in a research report on Thursday, October 15th. Wall Street Zen lowered shares of Conduent from a “sell” rating to a “strong sell” rating in a research report on Sunday, November 1st. Finally, Zacks Research lowered shares of Conduent from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

About Conduent

Conduent Incorporated (NASDAQ: CNDT) provides business process services and technology solutions to government agencies and commercial organizations. Its services are designed to help clients manage complex administrative processes, improve customer interactions and modernize operations through digital tools and automation.

The company’s offerings include transportation and mobility services, such as electronic tolling, transit fare collection and traffic-management solutions; government services, including public benefits administration, payment processing and constituent support; and commercial services covering customer experience, claims and benefits administration, human resources and other business processes.

Conduent was established as an independent company following its separation from Xerox in 2017.