Conduent 2025 Q1 Earnings Revenue Decline with Net Income Down 151.5%

Conduent (CNDT) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The total revenue for the quarter fell short of expectations, dropping 18.5% to $751 million from $921 million in the previous year. The company missed analyst consensus estimates for revenue by reporting $751 million instead of $778.33 million. Despite this, Conduent's adjusted earnings per share loss of $0.13 was better than the anticipated loss of $0.15. Looking ahead, Conduent maintained its FY2025 guidance, projecting sales between $3.1 billion and $3.25 billion, aligning closely with the previous year's figures and analyst expectations. The company aims to navigate macroeconomic challenges while focusing on strategic investments and operational improvements.

Revenue

Earnings/Net Income

Conduent swung to a loss of $0.33 per share in 2025 Q1 from a profit of $0.46 per share in 2024 Q1, marking a 171.7% negative change. The company reported a net loss of $51 million in 2025 Q1, reflecting a 151.5% deterioration from the net income of $99 million achieved in 2024 Q1. This significant decline in EPS indicates unfavorable performance compared to the previous year.

Price Action

Post-Earnings Price Action Review

The strategy of buying Conduent shares after a revenue drop quarter-over-quarter and holding for 30 days resulted in a 25.25% return over the past five years, significantly underperforming the benchmark return of 84.08%. This strategy yielded an excess return of -58.84% and a compound annual growth rate (CAGR) of 4.62%. The maximum drawdown during this period was -29.11%, highlighting the potential risks involved. The Sharpe ratio stood at 0.24, indicating a relatively low risk-adjusted return, while the volatility was measured at 19.29%, reflecting moderate fluctuations in stock performance. These figures underscore the challenges in achieving substantial gains through this particular post-earnings strategy.

CEO Commentary

Guidance

Additional News

Conduent Incorporated completed the acquisition of a 20% stake in Conduent Victoria Ticketing System Pty Ltd from Convergint Australia Pty Ltd for $5 million on April 30, 2025. The acquisition expands Conduent's influence in the ticketing system market, enhancing its strategic position in the sector. This move aligns with Conduent's broader portfolio rationalization efforts, aiming to achieve over $1 billion in deployable capital. No significant changes in C-level positions or dividend/buyback announcements were reported within the three-week timeframe from May 07th, 2025. The acquisition represents a key non-earnings related activity, demonstrating Conduent's commitment to expanding its operational capabilities and market presence through strategic investments.