Conduent Inc CNDT shares are trading higher after it reported fourth-quarter FY23 results.
Revenues fell 3.3% Y/Y to $953 million, surpassing the analyst consensus of $930 million.
The new business TCV pipeline increased 6% Q/Q and 10% Y/Y, driven by several substantial early-stage opportunities in the Government and Transportation Segment.
Adjusted EBITDA grew by 8.4% Y/Y to $103 million, with a margin expansion of 120 bps Y/Y to 10.8%. Adjusted EPS of $0.03 missed the street view of $0.04.
Operating cash flow stood at $122 million, with adjusted FCF of $93 million. Conduent repurchased approximately 6.6 million shares in the quarter.
The company finished the quarter with cash and equivalents worth $498 million. Long-term debt, as of year-end, was $1.25 billion.
In the fourth quarter of 2023, the company agreed to sell its Curbside Management and Public Safety Solutions businesses for $230 million plus the assumption of certain liabilities and expects it to be completed in the first half of 2024.
Outlook: For FY24, the company foresees adjusted revenue of $3.60 billion-$3.70 billion against the consensus of $3.70 billion.
Cliff Skelton, President and Chief Executive Officer, said, “In March 2023, we outlined a game plan for growth, rationalization, and improved cash flow generation with a target 2025 exit plan. We concluded year one of that plan with two portfolio divestiture announcements expected to close in the first half of 2024, a share repurchase program well underway, several key client wins, and renewed confidence in our plan to further rationalize the portfolio and efficiently deploy capital for the future.”
Also Read: Conduent’s Big Move: Shedding Two Businesses for $260M To Slash Debt And Refine Portfolio
Price Action: CNDT shares are trading higher by 2.5% to $3.4850 on the last check Wednesday.
