Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5986
    +0.0011 (+0.18%)
     
  • NZD/EUR

    0.5541
    +0.0008 (+0.15%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • NZD/JPY

    90.4800
    +0.0870 (+0.10%)
     

Why Conduent Stock Was Slammed Friday

What happened

Shares of Conduent (NYSE: CNDT), a company that provides business process services, fell as much as 39.2% on Friday. As of 11:40 a.m. EDT, the stock was down about 35%.

The stock's pullback follows Conduent's second-quarter results, which included a significant year-over-year decrease in revenue and a lowered full-year outlook.

A chalkboard sketch of a downward sloping arrow.
A chalkboard sketch of a downward sloping arrow.

Image source: Getty Images.

So what

Conduent's second-quarter revenue was $1.1 billion, down from $1.39 billion in the same period last year. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $114 million fell 7.3% when excluding the impact of divestitures.

ADVERTISEMENT

Notably, Conduent said in its second-quarter earnings release that the company has suspended its CEO search as it conducts "a strategic and operational review of the company and each line of business."

Now what

Conduent lowered its outlook for revenue and its adjusted EBITDA margin. Now the company expects fiscal 2019 revenue to decline 4% to 5%, down from a previous forecast for revenue to drop 3% to 4%. Furthermore, management guided for an adjusted EBITDA margin for the full year between 10.8% and 11.6%, below a previous estimate for 12% to 13%.

"Given continued pressure on the top-line and a more balanced approach on expense management initiatives, we've lowered our outlook for the year," explained Conduent CFO Brian Webb-Walsh in the company's second-quarter update. "We are focused on executing on our strategy to improving the trajectory of our business."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com