Conduent Inc CNDT shares are diving today after it reported Q3 FY23 results.
Revenues declined 4.6% Y/Y to $932 million, beating the analyst consensus of $915 million.
The new business TCV pipeline rose 13% Q/Q, led by several sizeable early-stage opportunities in the Government Segment.
Adjusted EBITDA fell 12.4% Y/Y to $92 million, with margin contracting 80 bps Y/Y to 9.9%.
Adjusted EPS loss of $(0.09) missed the street view of $0.02.
Operating cash flow stood at $(11) million, with Adjusted FCF of $(35) million.
The company exited the quarter with cash and equivalents worth $451 million. Long-term debt, as of quarter-end, was $1.27 billion.
In Q3 2023, the company penned a deal to transfer its BenefitWallet HSA portfolio and anticipates the complete portfolio transfer in H1 2024, with an estimated pre-tax gain of around $425 million.
CNDT repurchased approximately 2 million shares in the quarter.
Cliff Skelton, President and CEO, said, “Macro-economic conditions in the Commercial sector influenced near-term sales opportunities as experienced by many of our competitors, but again, our diversity allowed the Government and Transportation segments to provide offset advantages.”
Price Action: CNDT shares are down 15.2% to $2.70 on the last check Wednesday.