What happened
Business-services provider Conduent (CNDT +3.25%) clearly wasn't providing enough optimism for investors on Thursday. The company's stock slipped by just over 1% on the day, following a Wednesday after-market hours earnings release that was basically met with a shrug by the market.
So what
For its Q4 of 2021, Conduent's revenue came in at just under $1.05 billion, which was down marginally from the nearly $1.06 billion in the same quarter the previous year. Non-GAAP (adjusted) net income recorded a steeper decline, falling to $31 million ($0.13 per share) from Q4 2020's $46 million.
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Both headline figures were very close to the average analyst estimates. Collectively, prognosticators following the tech-company's stock were modeling $1.04 billion on the top line and $0.13 for adjusted, per-share net profit.
In the earnings release, Conduent explained that in 2021, it was "benefiting from strong non-recurring stimulus payments volume in our Government Services business and new business ramp across all segments." However, this was "offset by lost business from prior years."
Now what
Conduent also proffered selected full-year 2022 and 2023 guidance. It believes its top line will shrink to between $3.825 billion and $3.975 billion this year (from 2021's total of $4.14 billion), and rise at a 1% to 4% year-over-year pace in 2023.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) should follow a better trajectory, rising this year by 9.5% to 10.5% over 2021's $487 million, then gaining an additional 10.5% to 11.5% in 2023.
Conduent did not publish net-profit forecasts.
