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Unisys Corporation (NYSE:UIS) climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. Unisys is a worldwide information technology company. The company provides a portfolio of IT services, software, and technology that solves critical problems for clients.
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Unisys Corporation Earnings Cheat Sheet
Results: Reported a profit of $50.7 million (99 cents per diluted share) in the quarter. Unisys Corporation had a net loss of $7.6 million or a loss 27 cents per share in the year-earlier quarter.
Revenue: Fell 1.7% to $921.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Unisys Corporation beat the mean analyst estimate of 48 cents per share. Analysts were expecting revenue of $912.4 million.
Quoting Management: “We made continued progress on our strategic and financial goals in the second quarter,” said Unisys Chairman and CEO Ed Coleman. “We significantly increased our profitability and grew revenue on a constant currency basis for the third quarter out of the past four. Our technology business had a particularly good quarter, led by strong ClearPath sales. In services, we grew our IT outsourcing business as we added new clients such as the American Red Cross. We also achieved a second-quarter services operating profit margin of eight percent, within our targeted eight to 10 percent range. We continue work to strengthen our balance sheet, announcing actions today to retire an additional $84.5 million of debt. When these actions are completed, we will have hit our year-end 2013 debt reduction target and will have reduced our debt, including borrowings under our former accounts receivable facility, by about $1 billion since the end of 2008.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 25 cents in the first quarter, by 58 cents in the fourth quarter of the last fiscal year, and by 93 cents in the third quarter of the last fiscal year.
Over the last five quarters, revenue has fallen an average of 2.1% year-over-year. The biggest drop came in the second quarter of the last fiscal year, when revenue fell 11.3% from the year-earlier quarter.
The company’s cost of sales slipped to $678.1 million, a dip of 77.2% from a year ago. Last quarter, cost of sales was 73.6% of revenue versus 77.2% a year earlier.
Looking Forward: The average estimate for the third quarter remains unchanged at 89 cents a share. The average estimate for the fiscal year is $2.90 per share, a rise from $2.70 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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