Conduent Q2 Revenue Drops 12%, Net Loss Widens to $116M Amid Restructuring
CNDT sits 30% above its 52-week low of $1.15.
Summary
Conduent's Q2 revenue fell 12% YoY to $531M, with a GAAP net loss of $116M, significantly worse than the $40M loss a year ago. Adjusted EBITDA dropped 30% to $16M, and margins compressed to 3.0%. The company is in the midst of a transformation, with $234M in expected divestiture proceeds from selling its Transit and Tolling businesses, which will be used to pay down debt. New business signings ACV of $99M and a growing pipeline offer some offset, but current results reflect ongoing restructuring costs and lower Government segment profitability. The stock trades at $1.50 with a $264M market cap, leaving little room for execution missteps.
At the time of this announcement, CNDT was trading at $1.50 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $263.7M. The 52-week trading range was $1.15 to $2.98. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.