When Conduent Inc. (NASDAQ: CNDT) reported its second-quarter financial results after the markets closed on Thursday, the business process services company posted $0.12 in earnings per share (EPS) and $1.02 billion in revenue. The consensus estimates had called for a net loss of $0.05 per share and $925.5 million in revenue. The same period of last year reportedly had EPS of $0.13 on revenue of $1.11 billion.
Revenue for the latest quarter beat expectations due to better than expected results in the Government and Transportation segments. Revenue was lower compared with the second quarter of last year, driven by prior-year lost business and COVID-19 related impacts.
Higher than expected activity in the Government business was driven primarily by increased volumes in the Supplemental Nutrition Assistance Program (SNAP) and Pandemic Supplemental Nutrition Assistance Program (P-SNAP) and Unemployment Insurance prepaid cards offerings.
Additional highlights from the second quarter include strong sales performance with $623 million in new business signings, a 90% increase over the same period last year and a 92% increase sequentially. This represents the strongest signings quarter for the company since its spin-off as a standalone public company.
Conduent also saw annual recurring revenue of signings increase 25% year over year to $105 million, which is up 84% sequentially.
On the books, cash and cash equivalents totaled $428 million at the end of the quarter, down from $496 million at the end of the previous fiscal year.
Conduent stock traded up about 83% Friday morning, at $4.14 in a 52-week range of $1.54 to $7.97. The consensus price target is $2.75.