Exela Stock Falls On Q2 Revenue Miss; Reiterates FY21 Guidance

Exela Technologies Inc XELA reported a preliminary second-quarter FY21 revenue decline of 4.8% year-on-year to $293 million, missing the analyst consensus of $314.1 million.
Segments: Revenue for the Information and Transaction Processing Solutions segment declined 10.6% Y/Y to $217.3 million due to lower volumes from COVID-19 and transition revenue roll-off.
Healthcare Solutions' revenue rose 14.3% Y/Y to $56.2 million due to increased volumes driven by new statements of work, new customers, and backlog from existing customers.
Legal and Loss Prevention Services revenue increased 25.9% Y/Y to $19.5 million.
Margins: The gross margin expanded 720 bps to 28.6%.
The adjusted EBITDA margin grew 336 bps to 17.4%.
Loss per share narrowed to $(0.33) from $(1.01) last year.
Exela held $47.9 million in cash and equivalents. It used $46 million in operating cash flow during the six months ended Jun. 30.
Outlook: Exela reiterated the FY21 revenue outlook of $1.25 billion - $1.39 billion against the analyst consensus of $1.33 billion.
The company sees a gross profit margin of 23% - 25%. It sees an adjusted EBITDA margin of 16% - 17%.
Price Action: XELA shares traded lower by 6.23% at $2.865 on the last check Tuesday.

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