Alight reports Q1 adjusted EPS 13c, consensus 12c

Reports Q1 revenue $816M, consensus $831.9M. As announced on March 20, the company entered into a definitive agreement to sell its Professional Services segment and its Payroll & HCM Outsourcing businesses. Closing of the transaction is subject to various closing conditions, including regulatory approvals, and is expected by mid-year 2024. Beginning with the quarter ended March 31, 2024, the Company began accounting for the assets and liabilities of the Payroll & Professional Services business as “held for sale” and its operating results as discontinued operations. As such, the financial information contained in this release is presented on a continuing operations basis, unless otherwise noted. Until closing, the Payroll & Professional Services business will continue to operate as a business of Alight; accordingly, this press release also presents total company results. “It has been an exciting start to the year for Alight, with the announced agreement to sell our Payroll and Professional Services business and create a world-class partnership with H.I.G. to further accelerate our transformation. As we eagerly await the close of the transaction, we kicked off 2024 with BPaaS revenue growth of 21% from continuing operations, and further expanded our total company revenue under contract to $3.1 billion for 2024. We are also nearing the on-time completion of our cloud migration project, which we expect will deliver improved profitability and cash generation. Taken together, we believe our strategies on both the top and bottom line are positioning Alight for delivering sustainable, profitable growth,” said Chief Executive Officer Stephan Scholl when the company reported yesterday.