Why Unisys Shares Tanked (UIS)

Why Unisys Shares Tanked

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Unisys (NYSE: UIS ) tanked today by as much as 16% after the company reported third-quarter earnings and missed top-line estimates.

So what: Revenue in the third quarter fell 14% to $877 million, which was short of the $912.4 million that investors were expecting the company to report. On the bright side, non-GAAP earnings per share came in at $0.85, well ahead of the $0.48 per share profit that the market would have been satisfied with.

Now what: However, on a GAAP basis, Unisys reported a net loss of $0.28 per share. The two primary adjustments relate to $23.1 million in debt reduction charges and $28.9 million in increased pension expense. The company has now completed its $1 billion multiyear debt reduction program ahead of schedule, and has just $211 million of total debt left. It seems investors are more focused on the top-line miss, though.

Interested in more info on Unisys? Add it to your watchlist by clicking here.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.