Shares of Conduent Incorporated (NASDAQ: CNDT) are experiencing a notable surge of 10.00% in the current-market session, reaching $3.47 in the latest assessment. This substantial increase in CNDT stock closely follows the disclosure of its quarterly performance and the divestment of an asset.
Conduent (CNDT) has today revealed its financial results for the first quarter of 2024, reporting a revenue of $92 million and pre-tax income of $127 million. This quarter reflects continued advancement in Conduent’s portfolio performance, influenced by timing considerations and variances across its segments.
Although revenue surpassed expectations and adjusted EBITDA/margin remained broadly consistent with projections, sales performance was hindered by the timing of various opportunities between Q1 and Q2. The diversification of its portfolio is further highlighted by robust performance in Transportation, enhancements in Commercial, and some softness in Government.
Earlier today, Conduent announced the completion of the sale of its Curbside Management and Public Safety businesses to Modaxo, a division of Constellation Software Inc. The transaction, initially announced on December 28, 2023, amounted to a purchase price of $230 million. This divestiture signifies another significant stride in Conduent’s endeavors to focus on core competencies and foster growth for the benefit of shareholders and clients alike.
With the conclusion of this sale, Conduent will now concentrate on facilitating a seamless transition for its team members and clients, as the company continues to implement its growth strategy and progress towards its deployable capital objectives. As outlined during Conduent’s 2023 investor briefing, the company embarked on a path to rationalize its business portfolio, enhancing focus on core competencies, agility, and value creation for shareholders and clients.
Conduent will also persist in driving innovation in its Road Usage Charging Solutions and Transit Solutions businesses, enabling streamlined, high-volume mobility services. The sale to Modaxo will not impact these operations. Additionally, Conduent expects to finalize the BenefitWallet transaction in May.
