Shares of Conduent (NYSE:CNDT), a company that provides business process services, fell as much as 39.2% on Friday. As of 11:40 a.m. EDT, the stock was down about 35%.
The stock's pullback follows Conduent's second-quarter results, which included a significant year-over-year decrease in revenue and a lowered full-year outlook.
Conduent's second-quarter revenue was $1.1 billion, down from $1.39 billion in the same period last year. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $114 million fell 7.3% when excluding the impact of divestitures.
Notably, Conduent said in its second-quarter earnings release that the company has suspended its CEO search as it conducts "a strategic and operational review of the company and each line of business."
Conduent lowered its outlook for revenue and its adjusted EBITDA margin. Now the company expects fiscal 2019 revenue to decline 4% to 5%, down from a previous forecast for revenue to drop 3% to 4%. Furthermore, management guided for an adjusted EBITDA margin for the full year between 10.8% and 11.6%, below a previous estimate for 12% to 13%.
"Given continued pressure on the top-line and a more balanced approach on expense management initiatives, we've lowered our outlook for the year," explained Conduent CFO Brian Webb-Walsh in the company's second-quarter update. "We are focused on executing on our strategy to improving the trajectory of our business."