Conduent Inc Down 11.76% To $2.82 After Earnings Miss

Conduent Inc (CNDT) missed earnings estimates for Q3 2023 this morning.

Conduent Inc's earnings came in at an EPS loss of $0.09 per share, 550% lower than estimates for an EPS of $0.02 per share. The firm's earnings are down 200% since reporting $0.09 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Conduent Inc revenue averaged out to $915 million, with the business managing to beat those expectations with reported third-quarter revenue of $932 million. The $17 million (2%) positive revenue surprise led to negative 5% growth year-over-year as the firm reported revenue of $977 million in its year-ago quarter. The lower earnings growth compared to revenue points to Conduent Inc not being able to improve its profit margin.

The stock is down 11.76% to $2.82 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 36.

Conduent Inc acts as a provider of business process services with expertise in transaction-intensive processing, analytics, and automation. The company provides industry-focused service offerings in growth markets such as Healthcare and Transportation as well as provides multi-industry services such as transaction processing, customer care, and payment services. It operates through three segments namely Commercial Industries which is the key revenue-driving segment, Government Service, Transportation. The services provided by the company include industry-centric business process services, government-centric business process services, business process services, and others.