Why Unisys Shares Popped

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 IT services specialist Unisys (NYSE: UIS  ) climbed 10% today after its quarterly results easily topped Wall Street expectations.

So what: The stock was crushed in late October on concerns over slumping demand, but a wide fourth-quarter profit beat -- adjusted EPS of $0.85 versus the consensus of $0.57 -- reinforces optimism over management's initiatives to cope. Although revenue fell 14% during the quarter, improving technology segment margins, coupled with ongoing debt reduction, are giving Mr. Market good feelings about Unisys' financial position going forward.

Now what: Don't let today's pop prevent you from looking into the stock. "In an uncertain business environment, we increased our profitability and generated significant free cash flow," said Chairman and CEO Ed Coleman. "We also continued to enhance our solution portfolio to strengthen our competitive profile. We remain focused on driving profitable growth in the year ahead." With the stock still trading at a cheapish forward P/E of 6 even after today's surge, there might even be some room left to buy into that bullishness.

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

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (6)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2224408, ~/Articles/ArticleHandler.aspx, 9/27/2016 9:54:44 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 38 minutes ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:02 PM
UIS $9.28 Down -0.04 -0.43%
Unisys CAPS Rating: **