Skip to main content

Market Overview

Conduent Earnings Preview

Share:

Conduent (NASDAQ:CNDT) announces its next round of earnings this Thursday, February 18. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Conduent analysts model for earnings of $0.19 per share on sales of $1.03 billion. In the same quarter last year, Conduent reported earnings per share of $0.18 on revenue of $1.10 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 5.56%. Sales would be down 6.28% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.12 -0.05 0.07 0.20
EPS Actual 0.26 0.12 0.05 0.18
Revenue Estimate 996.25 M 923.25 M 1.00 B 1.08 B
Revenue Actual 1.04 B 1.02 B 1.05 B 1.10 B

Stock Performance

For a full 12 months, the return has risen by 13.88%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Conduent is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

Related Articles (CNDT)

View Comments and Join the Discussion!

Posted-In: BZI-EPEarnings