What to expect from Alight’s (ALIT) Q3 earnings

Human capital management provider Alight (NYSE:ALIT) will be announcing earnings results this Tuesday after market close. Here’s what investors should know.

Alight beat analysts’ revenue expectations last quarter, reporting revenues of $511 million, down 3.2% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly.

Is Alight a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Alight’s revenue to decline 11.1% year on year, a further deceleration from the 4% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Alight has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Alight’s peers in the professional staffing & hr solutions segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Kforce delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 0.9%, and Robert Half reported flat revenue, in line with consensus estimates. Kforce traded down 2.7% following the results while Robert Half was up 21.7%.

Read our full analysis of Kforce’s results here and Robert Half’s results here.

Investors in the professional staffing & hr solutions segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Alight is up 2.2% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $8.93).

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