Alight (ALIT) stock is losing ground in Wednesday's trading. The company's share price was up 9.9% as of 3:30 p.m. ET, according to data from S&P Global Market Intelligence.
Alight published its third-quarter results before the market opened this morning, posting earnings that beat Wall Street's expectations and sales that came in lower than anticipated. The company recorded non-GAAP (adjusted) earnings per share of $0.14 on revenue of $813 million. Meanwhile, the average analyst estimate had called for per-share earnings of $0.13 on revenue of roughly $829.5 million.
Alight posts strong earnings and bookings in Q3
Alight's revenue grew 8% year over year in the third quarter. Sales for its employer solutions segment were up roughly 9% compared to the prior-year period, and business-processes-as-a-service (BPaaS) bookings jumped 26% to hit $262 million.
While sales came in below the average analyst target, Alight managed to grow earnings per share by roughly 17% year over year in the quarter. Even better, the technology and consulting services specialist issued a significant increase for its full-year earnings guidance range.
What's next for Alight?
For the full-year period, Alight is targeting revenue between $3.47 billion and $3.51 billion -- representing annual growth of 11.5% at the midpoint of the target. Meanwhile, the company now expects adjusted earnings per share to be between $0.65 and $0.69 -- up from its previous guidance for earnings between $0.62 per share and $0.67 per share.
Macroeconomic pressures could curb Alight's growth opportunities in the near term, but it looks like the company has established a solid sales base. Management notes it already has $2.7 billion in revenue under contract for 2024.
On the other hand, the company still has a lot of debt on the books. Alight ended the quarter with cash and equivalents totaling $276 million and total debt of roughly $2.8 billion. The company will have to prove it can continue growing effectively while also managing its debt load.