Conduent (CNDT) Reports Q4 Loss, Misses Revenue Estimates

Company Performance - Conduent reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, and compared to earnings of $0.03 per share a year ago, indicating an earnings surprise of -66.67% [1] - The company posted revenues of $800 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.17%, and down from $953 million in the same quarter last year [2] - Over the last four quarters, Conduent has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The immediate price movement of Conduent's stock will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the coming quarter is -$0.08 on $800 million in revenues, and -$0.02 on $3.28 billion in revenues for the current fiscal year [7] - The estimate revisions trend for Conduent is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Outsourcing industry, to which Conduent belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting that the industry's outlook can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]