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Summary
- Exela stock rose 59 percent to end Tuesday’s trading at US$2.34 on Tuesday.
- The business process automation company is rolling out its EON platform for a large health insurance company.
- Exela projects its full-year revenue in the range of US$1.25 billion to US$1.39 billion.
Exela Technologies (NASDAQ:XELA) stock jumped as much as 75 percent in Tuesday’s trading session as the company said it is providing EON automation platform to a large health insurance company.
Exela has US$138.5 million in market capitalization. Its stock gained 87 percent year to date. During the last 52 weeks, Exela shares rallied to a high of US$7.82 from 99 cents.
Exela ended Tuesday’s trading at US$2.34, up 59.18 percent.
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What does Exela do?
The Texas-based Exela provides business process automation services to multiple industries, including banking, healthcare, insurance and manufacturing.
Exela enhances information management and workflow processes through automation and process optimization to reduce labor requirements.
Exela has over 4,000 customers in 50 countries. Its customers include over 60 percent of the Fortune 100 companies. The company generated US$1.29 billion in revenue in 2020.
Source: Pixabay
Recent developments
On Tuesday, Exela said the company is rolling out its robotic process automation platform EON for a large health insurance company. Exela did not disclose the name of the health insurance company.
Also, Exela recently said a US district judge has dismissed the Texas federal securities class action suit filed in March 2020.
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First-quarter result and 2021 outlook
For the first quarter ended March 31, Exela posted a net loss of US$39.2 million, which more than tripled from the US$12.7 million loss in the year-ago period.
Revenue fell 17.9 percent year over year to US$300.1 million. Revenue for the Information and Transaction Processing Solutions division was US$231.9 million, while Healthcare solutions and Legal and Loss Prevention services unit revenue came in at US$51.1 million and US$17.1 million, respectively.
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Meanwhile, Exela projects its full-year revenue to be between US$1.25 billion and US$1.39 billion. Capital expenditures are expected to be around one percent of the revenue.
Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
