Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Conduent Incorporated (NASDAQ:CNDT) Q3 2024 Results Conference Call November 6, 2024 9:00 AM ET Company Participants Giles Goodburn - Vice President, Investor Relations Cliff Skelton - President and Chief Executive Officer Steve Wood - Chief Financial Officer Conference Call Participants Pat McCann - NOBLE Capital Markets Marc Riddick - Sidoti & Company Chris Sakai - Singular Research Operator Greetings, and welcome to the Conduent Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a re ...

Conduent (CNDT) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this company would post a loss of $0.26 per share when it actually produced a loss of $0.14, delivering a surprise of 46.15%.Over the last four quarters, the company has surpassed conse ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q _______________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37817 CONDUENT INCORPORATED ____________________________________________ ...

Financial Performance - Q3 2024 revenue was $807 million, a decrease of 13.4% year-over-year from $932 million in Q3 2023[3] - Adjusted revenue for Q3 2024 was $781 million, down 6.0% from $831 million in Q3 2023[3] - Pre-tax income for Q3 2024 was $159 million, compared to a loss of $313 million in the prior year[5] - Adjusted EBITDA for Q3 2024 was $32 million, with an adjusted EBITDA margin of 4.1%, down from 7.2% in Q3 2023[3] - Revenue for the three months ended September 30, 2024, was $807 million, a decrease of 13.4% from $932 million in the same period of 2023[21] - Net income for the three months ended September 30, 2024, was $123 million, compared to a net loss of $289 million in the same period of 2023[23] - Total operating costs and expenses for the three months ended September 30, 2024, were $648 million, down from $1,245 million in the same period of 2023, representing a 48.0% reduction[21] - Adjusted revenue for the three months ended September 30, 2024, was $781 million, a decrease of 6% compared to $831 million for the same period in 2023[49] - Adjusted net income for the three months ended September 30, 2024, was a loss of $24 million, compared to a loss of $44 million for the same period in 2023[49] - Adjusted operating income before adjustment for divestitures was a loss of $11 million for the three months ended September 30, 2024, compared to a loss of $15 million for the same period in 2023[50] - Adjusted EBITDA for the three months ended September 30, 2024, was $32 million, down from $60 million for the same period in 2023[50] - The company reported a comprehensive income of $137 million for the three months ended September 30, 2024, compared to a comprehensive loss of $308 million in the same period of 2023[23] Cash Flow and Liquidity - Cash and cash equivalents at the end of September 30, 2024, were $393 million, down from $498 million at December 31, 2023[25] - The net cash used in operating activities for the three months ended September 30, 2024, was $(13) million, compared to $(11) million in the same period of 2023[26] - The company generated $208 million in net cash from investing activities for the three months ended September 30, 2024, compared to $(22) million in the same period of 2023[26] - Free Cash Flow for the three months ended September 30, 2024, was $(29) million, compared to $(33) million for the same period in 2023[53] - Operating Cash Flow for the three months ended September 30, 2024, was $(13) million, compared to $(11) million for the same period in 2023[53] - The Adjusted Free Cash Flow for the three months ended September 30, 2024, was $(6) million, compared to $(35) million for the same period in 2023[53] Debt and Assets - Total assets decreased to $2,841 million as of September 30, 2024, from $3,162 million at December 31, 2023[25] - Long-term debt decreased significantly to $718 million as of September 30, 2024, from $1,248 million at December 31, 2023[25] Business Operations and Strategy - The company completed the sale of the Casualty Claims Solutions business for $224 million in cash during Q3 2024[4] - Conduent repurchased approximately 3.9 million shares of common stock as part of a $75 million share repurchase program[6] - FY 2024 adjusted revenue outlook is projected between $3,185 million and $3,215 million, down from $3,320 million in FY 2023[9] - The company achieved a net annual recurring revenue (ARR) activity metric of $46 million[1] - New business signings for annual contract value (ACV) totaled $111 million in Q3 2024[1] - Conduent was recognized as a leader in all five categories in the NelsonHall 2024 NEAT Report for Healthcare Payer Operational Transformation[7] Non-GAAP Measures - The company reported its financial results in accordance with U.S. GAAP and also discussed non-GAAP measures to provide better insights into business trends[32] - Adjusted Revenue, Adjusted Profit Before Tax, and Adjusted Net Income (Loss) are calculated by excluding items such as amortization of acquired intangible assets and restructuring costs[35] - Adjusted EBITDA is used to assess operations, representing income before interest, taxes, depreciation, and amortization, adjusted for specific items[42] - Free Cash Flow is defined as cash flows from operating activities minus costs for additions to land, buildings, and equipment, used as a liquidity measure[45] - Adjusted Free Cash Flow includes additional adjustments for litigation recoveries and transaction costs, providing insight into cash generation capabilities[46] - Revenue at Constant Currency is adjusted to exclude the impact of foreign currency translation, aiding in understanding business trends[47] - The company provided a Full Year 2024 outlook for Adjusted EBITDA Margin, excluding certain items that may materially impact reported results[48] - Management emphasizes that non-GAAP measures should not be viewed in isolation from U.S. GAAP results, as they provide additional transparency[32] - Adjusted Operating Income and Adjusted Operating Margin are calculated by adjusting for non-cash items and other identified items not indicative of ongoing business[41] - The adjusted effective tax rate is provided to facilitate comparisons between actual and adjusted rates, offering insights into underlying business results[39] - Total non-GAAP adjustments for the three months ended September 30, 2024, amounted to $(183) million, compared to $296 million for the same period in 2023[50] - Total non-GAAP adjustments for the nine months ended September 30, 2024, were $(3.44) million, compared to $1.49 million for the same period in 2023[51] - Adjusted Effective Tax Rate for the nine months ended September 30, 2024, was 19.7%, compared to (158.4)% for the same period in 2023[51] Earnings Per Share - The company’s basic net income per share for the three months ended September 30, 2024, was $0.75, compared to a loss of $1.34 per share in the same period of 2023[21] - Adjusted Diluted EPS for the three months ended September 30, 2024, was $(0.14), compared to $(0.09) for the same period in 2023[51] - The effective tax rate for the three months ended September 30, 2024, was 22.2%, up from 7.8% in the same period last year[51] - Adjusted EBITDA Margin for the three months ended September 30, 2024, was 4.1%, compared to 7.2% for the same period in 2023[51]

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phas ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

KING OF PRUSSIA, Pa., Sept. 04, 2024 (GLOBE NEWSWIRE) -- MedRisk, a leader in managed physical rehabilitation in workers' compensation, has completed the acquisition of the Casualty Claims Solutions business, including the portfolio of Strataware® products, services, and technologies, from Conduent Incorporated (Nasdaq: CNDT). The acquired business encompasses workers' compensation and auto casualty bill review solutions and services, including the processing of medical bills and clinical services. Today, t ...

| --- | --- | |-------|-------| | | | | | | Cautionary Statements Forward-Looking Statements This document, any exhibits or attachments to this document, and other public statements we make may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," expectations," "in front of us," "plan," "intend," "will," "aim," "should," "could," "forecast," "target," "may," "continue to," "looking to continue," "end ...

Financial Data and Key Metrics - Q2 2024 adjusted revenue was $811 million, down 4.7% YoY, and adjusted EBITDA was $29 million with a 3.6% margin, exceeding expectations [5] - Net ARR turned negative for the first time at -$49 million, but recovery to positive is expected in Q3 2024 [13] - Adjusted EBITDA margin is expected to improve sequentially, reaching 3.75% to 4.25% in Q3 2024 [33] - Full-year 2024 adjusted revenue is projected to be between $3.325 billion and $3.375 billion, with adjusted EBITDA margin in the range of 4% to 5% [27] Business Line Performance - Commercial segment revenue declined 3.8% YoY to $425 million, with adjusted EBITDA down 12.8% to $41 million [17] - Government segment revenue fell 9.3% YoY to $245 million, driven by contract terminations and lower SNAP volumes [19][20] - Transportation segment revenue increased 1.4% YoY to $141 million, with adjusted EBITDA at $3 million [22] Market Performance - Commercial sales showed strength, particularly in CX and BPaaS spaces, with $82 million in ACV [12] - Government and Transportation segments saw strong add-on business from existing clients, with a strong pipeline in Government Healthcare [12] - Transportation segment benefited from the implementation ramp of a large transit project in Australia, offset by a pricing adjustment in tolling business [22] Strategic Direction and Industry Competition - The company is focused on portfolio rationalization, with $1 billion of deployable capital, 66% of which has been used for debt prepayment and share repurchases [8][32] - Divestitures have reduced net leverage to 1.7x, with a target of 1x by 2025 [25][32] - The company is investing in generative AI initiatives, with promising pilots in fraud detection and document management [40][41] Management Commentary on Operating Environment and Future Outlook - Management expects sequential improvement in EBITDA margins through 2024 and 2025, driven by cost efficiency programs and stranded cost removal [15][16] - The company is confident in achieving its 2025 exit rate targets, with a strong sales pipeline and cost reduction initiatives [32] - Management highlighted the importance of cross-segment opportunities, particularly in public sector markets for human capital and finance solutions [38][39] Other Important Information - The company repurchased 43.3 million shares, including all shares previously owned by Carl Icahn, simplifying decision-making and capital allocation [24][46] - Capital expenditure in Q2 was 3.6% of revenue, expected to be around 3% for full-year 2024 [26] - The company is partnering with a leading cybersecurity firm to address PII and PHI identification in data breaches [42] Q&A Session Summary Question: Impact of Carl Icahn's share divestiture on decision-making - The divestiture simplifies decision-making, as the board is now smaller and more aligned on capital allocation and strategy [45][46] Question: Confidence in full-year targets - Confidence is driven by cost efficiency programs, sequential EBITDA improvement, and a strong sales pipeline [47][48] Question: Potential for additional divestitures - No major divestitures are expected, but opportunistic offers for discrete assets may be considered [50][51] Question: Microsoft AI partnership and client receptivity - The partnership with Microsoft is focused on proven AI pilots, particularly in fraud detection and document management, with strong client interest [55][56] Question: Government Direct Express contract status - The contract is complex and risky, with a high probability of retention despite informal negotiations with another bank [57][58] Question: Future capital return to shareholders - The company has deployed $880 million of its $1 billion capital target, with $120 million to $140 million remaining for future allocation, potentially for shareholder returns [60][61] Question: Outsourcing trends in healthcare and other sectors - Outsourcing interest is increasing in healthcare, logistics, and public sector markets, with a focus on nearshore and offshore capabilities [65][66] Question: Geographic markets for outsourcing - Traditional markets like the Philippines and India remain strong, with some exploration of new regions like South Africa and Egypt [68] Question: Revenue model for GenAI and Microsoft collaboration - The collaboration is focused on hosting solutions in Azure, with mutual benefits from increased GenAI adoption [69]