Conduent (CNDT) Reports Q3 Loss, Lags Revenue Estimates

Group 1: Earnings Performance - Conduent reported a quarterly loss of $0.14 per share, better than the Zacks Consensus Estimate of a loss of $0.16, but worse than a loss of $0.09 per share a year ago, representing an earnings surprise of 12.50% [1] - Over the last four quarters, Conduent has surpassed consensus EPS estimates three times [2] - The company posted revenues of $807 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.10%, and down from $932 million year-over-year [2] Group 2: Stock Performance and Outlook - Conduent shares have increased by approximately 1.6% since the beginning of the year, while the S&P 500 has gained 21.2% [3] - The company's earnings outlook is mixed, with current consensus EPS estimates at -$0.14 on $819.5 million in revenues for the coming quarter and -$0.53 on $3.38 billion in revenues for the current fiscal year [7] - The Zacks Rank for Conduent is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Outsourcing industry, to which Conduent belongs, is currently in the bottom 10% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]