Conduent (CNDT) Q3 Earnings To Reflect Impact Of Divestitures
Zacks Investment Research | Nov 05, 2018 04:55AM ET
Conduent Incorporated (NYSE:CNDT) will report third-quarter 2018 results on Nov 7, before the bell.
The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 11.2%.
So far this year, shares of the company have gained 17.9%, outperforming the industry ’s 7.8% growth.
How Are Estimates Faring?
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.34 billion, indicating year-over-year decline of 9.3%. Impacts of strategic decisions to exit long accounts and non-profitable contracts, divestitures done in 2017, and adoption of 606 accounting standard are expected to continue weighing on revenues. In the last reported quarter, revenues totaled $1.39 million, down 7.3% on a year-over-year basis.
On the earnings front, the Zacks Consensus Estimate stands at 29 cents, reflecting year-over-year decrease of 31.8%. This year-over-year decline can be attributed to drop in overall revenues, investment (primarily in our sales force), 2017 divestitures completed in 2017 and the run-off of the company’s Student Loan business. In the last reported quarter, adjusted EPS of $29 cents rose 81.3% on a year-over-year basis.
What Our Model Says?
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP Filter .
Conduent has an Earnings ESP of -2.61% and a Zacks Rank #3, a combination that makes surprise prediction difficult.
Stocks that Warrant a Look
Here are some stocks that you may want to consider as our model shows these have the right combination of elements to post a positive earnings surprise:
Broadridge Financial (NYSE:BR) has an Earnings ESP of +12.23% and a Zacks Rank #2. The company is slated to report first-quarter fiscal 2019 results on Nov 6. You can see .
CenturyLink (NYSE:CTL) has an Earnings ESP of +10.29% and a Zacks Rank #2. The company is slated to report third-quarter results on Nov 8.
Houghton Mifflin Harcourt (NASDAQ:HMHC) has an Earnings ESP of +6.90% and a Zacks Rank #3. The company is slated to report third-quarter 2018 results on Nov 8.
Looking for Stocks with Skyrocketing Upside?
Get The News You Want
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.