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 (UIS 0.92%) 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.
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