Alight Q2 revenue beats estimates
Overview
Alight Q2 revenue falls 1.9% to $528 mln, beating analyst expectations
Adjusted EPS meets analyst expectations at $0.10, adjusted EBITDA misses
Co incurs $983 mln goodwill impairment charge, impacting net income
Outlook
Alight forecasts 2025 revenue of $2,282 mln to $2,329 mln
Company expects 2025 adjusted EBITDA of $620 mln to $645 mln
Alight anticipates 2025 adjusted diluted EPS of $0.58 to $0.64
Company projects 2025 free cash flow of $250 mln to $285 mln
Result Drivers
REVENUE DECLINE - Revenue decreased 1.9% to $528 mln due to lower project revenue and net commercial activity
PRODUCTIVITY SAVINGS - Gross profit improved to $176 mln, driven by productivity savings
GOODWILL IMPAIRMENT - $983 mln non-cash goodwill impairment charge related to Health Solutions unit impacted net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $528 mln | $525.10 mln (7 Analysts) |
Q2 Adjusted EPS | Meet | $0.1 | $0.1 (7 Analysts) |
Q2 Net Income |
| -$1.07 bln |
|
Q2 Adjusted EBITDA | Miss | $127 mln | $127.90 mln (7 Analysts) |
Q2 Gross Profit |
| $176 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Alight Inc is $10.00, about 48.7% above its August 4 closing price of $5.13
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: ID:nBw2lwVJTa
