Exela Shares Fall On Q3 Top-Line Miss, FY21 Revenue Outlook Cut

Exela Technologies XELA reported a preliminary third-quarter FY21 revenue decline of 8.5% year-on-year to $279.2 million, missing the consensus of $319.5 million.
Segments: Revenue for the Information and Transaction Processing Solutions segment declined 11.1% Y/Y to $208.3 million due to lower volumes from COVID-19 and transition revenue roll-off.
Healthcare Solutions' revenue was flat at $54 million. Legal and Loss Prevention Services revenue increased 1.3% Y/Y to $16.9 million.
Margins: The gross margin expanded by 90 bps to 24.2%. The adjusted EBITDA margin contracted 292 bps to 13%.
EPS loss of $(0.09) beat the consensus loss of $(0.12).
Exela held $170.99 million in cash and equivalents. It used $73.6 million in operating cash flow during the nine months ended September 30.
Outlook: Exela cut FY21 revenue to $1.16 billion - $1.18 billion from $1.25 billion - $1.39 billion, below the consensus of $1.25 billion.
Outlook for Gross profit margin of 23% - 25% and Adjusted EBITDA margin of 16% - 17% unchanged.
Price Action: XELA shares traded lower by 10.5% at $1.79 on the last check Friday.

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