Conduent Inc. (NASDAQ:CNDT) shares are trading higher after the company reported mixed third-quarter 2024 results.

• Revenue for Q3 declined 13.4% year over year to $807 million, missing the consensus of $817.33 million.
• Adjusted revenue declined 6% YoY to $781 million. The new business annual contract value (ACV) totaled $111 million. Total operating costs and expenses declined 47.95% YoY to $648 million.
• Adjusted EBITDA declined 46.7% year over year to $32 million, with margin contracting 310 bps yearly to 4.1%. Adjusted EPS loss of 14 cents was down from 9 cents a year ago, beating the consensus loss estimate of 15 cents.
• Operating cash flow was negative $13 million, with an adjusted FCF of negative $6 million.
• Conduent repurchased about 3.9 million shares in the quarter, completing its $75 million buyback program.
• The company ended the quarter with cash and equivalents worth $393 million. As of September end, its long-term debt was $718 million.

"Our Commercial segment continued to exhibit enhanced performance helping to offset a sales lag in our Government segment. We added several new leaders to our senior team which, when accompanied by continued sequential momentum, will help us finish the year strong," Conduent CEO Cliff Skelton said.

The company sold its Casualty Claims Solutions business in the quarter for $224 million. The proceeds went toward prepaying a $38-million Term Loan B and $37 million on Term Loan A.

2024 Outlook lowered: Conduent now expects adjusted revenue of $3.185 billion-$3.215 billion (prior $3.325 billion – $3.375 billion) versus the $3.38 billion consensus.

The company reduced its adjusted EBITDA margin outlook from 4%- 5% to 3.75% – 4% for 2024.

Price Action: CNDT shares are trading higher by 7.41% at $3.99 at the last check Wednesday.

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Image via Conduent