Conduent Inc. ( CNDT ) shares are trading higher after the company reported mixed third-quarter 2024 results.

Revenue for Q3 declined 13.4% year over year to $807 million, missing the consensus of $817.33 million.

Adjusted revenue declined 6% YoY to $781 million. The new business annual contract value (ACV) totaled $111 million. Total operating costs and expenses declined 47.95% YoY to $648 million.

Adjusted EBITDA declined 46.7% year over year to $32 million, with margin contracting 310 bps yearly to 4.1%. Adjusted EPS loss of 14 cents was down from 9 cents a year ago, beating the consensus loss estimate of 15 cents.

Operating cash flow was negative $13 million, with an adjusted FCF of negative $6 million.

Conduent ( CNDT ) repurchased about 3.9 million shares in the quarter, completing its $75 million buyback program.

The company ended the quarter with cash and equivalents worth $393 million. As of September end, its long-term debt was $718 million.

"Our Commercial segment continued to exhibit enhanced performance helping to offset a sales lag in our Government segment. We added several new leaders to our senior team which, when accompanied by continued sequential momentum, will help us finish the year strong," Conduent ( CNDT ) CEO Cliff Skelton said.

The company sold its Casualty Claims Solutions business in the quarter for $224 million. The proceeds went toward prepaying a $38-million Term Loan B and $37 million on Term Loan A.

2024 Outlook lowered: Conduent ( CNDT ) now expects adjusted revenue of $3.185 billion-$3.215 billion (prior $3.325 billion – $3.375 billion) versus the $3.38 billion consensus.

The company reduced its adjusted EBITDA margin outlook from 4%- 5% to 3.75% – 4% for 2024.

Price Action: CNDT shares are trading higher by 7.41% at $3.99 at the last check Wednesday.

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Image via Conduent ( CNDT )