Unisys Earnings: Profit Streak Snapped by a Loss
Unisys Corporation (NYSE:UIS) reported its results for the third quarter. 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 loss of $12.4 million (28 cents per diluted share) in the quarter. Unisys Corporation had a net income of $82.7 million or $1.63 per share in the year-earlier quarter.
Revenue: Fell 14% to $877.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Unisys Corporation reported adjusted net income of 85 cents per share. By that measure, the company beat the mean estimate of 57 cents per share. It fell short of the average revenue estimate of $912.4 million.
Quoting Management: “After a strong first half of 2012, we saw softer services demand, particularly for short-term project work, in the third quarter,” said Unisys Chairman and CEO Ed Coleman. “The lower services revenue, along with higher pension expense and debt reduction charges, impacted our results. However, we were pleased with margin improvement in our technology business, ongoing cost discipline across our company, continued improvements in service quality, and the early achievement of our 2013 debt reduction goal. Year to date, we have improved our profitability from 2011 levels. We are encouraged by reaction to recent product announcements, a growing reputation for service excellence, and a strong pipeline of opportunities,” Coleman said.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 52 cents in the second quarter, by 25 cents in the first quarter, and by 58 cents in the fourth quarter of the last fiscal year.
The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $50.7 million in the second quarter, a profit of $17.4 million in the first quarter and $98.3 million in the fourth of the last fiscal year.
Gross margins dropped last quarter, falling three percentage points from the year-earlier quarter to 24.9%. This breaks a streak of two consecutive quarters of expanding margins.
Revenue has fallen in the past two quarters. In the second quarter, revenue declined 1.7% to $921.3 million from the year-earlier quarter.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.13 a share to $1.15 over the last sixty days. For the fiscal year, the average estimate has moved up from $2.90 a share to $3.14 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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