Stock Monitor: SYNNEX Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 04, 2018 / Active-Investors.com has just released a free earnings report on Conduent Inc. (NYSE: CNDT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=CNDT. The Company reported its financial results on February 21, 2018, for the fourth quarter and full fiscal year ended December 31, 2017. The Company reported a strong performance on adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) and free cash flow in Q4 FY17. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Conduent most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For Q4 FY17, Conduent's total revenues reached $1.49 billion, a decrease of 1.39% from $1.51 billion in Q4 FY16. This decline was driven by strategic decisions, lost business, lower volumes from existing clients, and the impact from the divestitures which occurred during the third quarter. The Company's revenue numbers were in-line with analysts' consensus estimates.
Conduent's cost of services was $1.21 billion in Q4 FY17 compared to $1.39 billion in Q4 FY16, reflecting a decline of 12.94%. The Company's gross margin was $282 million in the reported quarter, 129.27% higher than $123 million in the year ago same quarter. Conduent incurred total costs and expenses of $278 million in Q4 FY17, 78.01% lower than $1.26 billion in Q4 FY16.
Conduent reported a net income from continuing operations of $208 million, or $0.98 per share, in Q4 FY17 compared to a net loss of $951 million, or $4.69 loss per share, in Q4 FY16. Conduent's reported quarter results included amortization of intangible assets, restructuring and related costs, separation costs, and tax adjustments. The Company's adjusted EBITDA were $188 million in the quarter under review, an increase of 9.30% from the previous year's comparable quarter. Conduent's adjusted diluted earnings per share (EPS), excluding non-recurring items, were $0.31 in Q4 FY17 compared to $0.29 in Q4 FY16, reflecting an increase of 6.90%. The Company's adjusted diluted EPS were higher than analysts' consensus estimates of $0.24.
For the full fiscal year ending December 31, 2017, Conduent's total revenues were $6.02 billion, a decline of 6.02% from $6.41 billion in FY16. The Company's gross margin advanced 14.84% to $1.05 billion y-o-y in FY17. Conduent had a net income from continuing operations of $177 million, or $0.81 per share, in FY17 compared to a net loss from continuing operations of $983 million, or $4.85 loss per share, in FY16. The Company's adjusted diluted EPS, excluding special items, were $0.85 in FY17, a decrease of 19.81% from $1.06 in FY16. Conduent's adjusted EBITDA were $672 million in the reported year, up 5.83% from $635 million in the previous year.
Segment Details
During Q4 2017, Conduent's Commercial Industries segment's GAAP revenues were $885 million, a decline of 5.45% from $936 million in Q4 FY16. The segment reported an adjusted EBITDA of $106 million in the reported quarter, up 30.86% from $81 million in the year ago corresponding quarter.
Conduent's Public Sector segment generated GAAP revenues of $534 million in Q4 FY17, a decrease of 6.97% from $574 million in Q4 FY16. The segment's adjusted EBITDA were $84 million in the reported quarter compared to $102 million in the previous year's same quarter, reflecting a decrease of 17.65%.
During Q4 FY17, Conduent's Others segment's GAAP revenues were $74 million compared to $4 million in Q4 FY16. The segment had an adjusted loss before interest, tax, and depreciation of $2 million in Q4 FY17 compared to $11 million in Q4 FY16.
Cash Matters
Conduent had cash and cash equivalents of $658 million as on December 31, 2017, 68.72% higher than $390 million as on December 31, 2016. The Company's long-term debt balance increased 6.18% to $2.06 billion as on December 31, 2017, from $1.94 billion as on December 31, 2016.
Conduent's net cash flow from operating activities was $237 million for the three months ended December 31, 2017, up 62.33% from $146 million for the same period in 2016. The Company had a free cash flow of $205 million in Q4 FY17, up 177.03% from $74 million in Q4 FY16.
During Q4 FY17, Conduent spent $39 million on additions to land, buildings, and equipment, 38.1% lower than $63 million in Q4 FY16.
Outlook
Conduent expects revenues to be flat to down 3%, on a constant currency basis, for FY18 from $5.8 billion in FY17. The Company expects its adjusted EBITDA to increase 8% - 12% in FY18 from $652 million in FY17. Conduent expects its free cash flow to be between 25% and 35% of its adjusted EBITDA for FY18.
Stock Performance Snapshot
April 03, 2018 - At Tuesday's closing bell, Conduent's stock marginally rose 0.27%, ending the trading session at $18.40.
Volume traded for the day: 2.04 million shares.
Stock performance in the last three-month - up 13.86%; previous six-month period - up 17.42%; past twelve-month period - up 9.65%; and year-to-date - up 13.86%
After yesterday's close, Conduent's market cap was at $3.90 billion.
The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 0.9% at the end of the session.
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