Conduent Q2 Earnings Beat Estimates, Reiterates FY23 Outlook

Conduent Incorporated CNDT reported Q2 revenues of $915 million, beating the analyst consensus of $900 million. Revenue inched down 1.4% Y/Y.

Q2 Adjusted EPS of $0.01 beat the street view of ($0.01) loss.

In the quarter under review, commercial volumes were impacted by softness in specific industries, while increased interest rates positively impacted the BenefitWallet business.

Total operating costs and expenses inched down 0.1% to $922 million in Q2.

Q2 Adjusted EBITDA of $93 million and Adjusted EBITDA Margin of 10.2% was ahead of expectations and higher than the prior-year period.

The company exited the quarter with cash and equivalents worth $500 million. Long-term debt, as of quarter-end, stands at $1.27 billion.

"We are now the first and only BPO provider to process transactions through the recently announced US Federal Reserve's FedNowSM Service," said Cliff Skelton, Conduent President and Chief Executive Officer. 

Outlook

For FY23, the company reiterated its Adjusted Revenue guidance of $3.70 billion-$3.80 billion against the consensus of $3.75 billion.

Price Action: CNDT shares are trading higher by 4.08% to $3.57 on the last check Wednesday.