Why Unisys Corporation Shares Plunged Today

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 Corporation (NYSE: UIS  ) fell more than 11% Wednesday after the company first quarter loss widened significantly from the same period last year.

So what: Quarterly revenue declined 6% year-over-year to $762 million, falling well short of analysts' expectations for sales of $826.13 million. This translated to an adjusted net loss of $0.74 per diluted share, compared to a loss on the same basis of $0.26 per share in the first quarter of 2013.

Now what: After noting Unisys' cash from operations improved over the same year-ago quarter, management blamed the revenue and margin shortfall simply on lower sales of technology and IT services projects. Still, the company remained optimistic regarding the ability of its new products -- including its cloud-based offerings, Stealth cybersecurity software, and Forward! fabric-basd server platform -- to drive growth in the second half of the year for the technology business.

Even so, nobody likes to see red ink, and investors are understandably wary those opportunities will pan out as promised. As a result, and even with shares trading at a rock-bottom 6.5 times next year's estimated earnings, I think investors would be wise to remain on the sidelines for the time being.

3 stocks poised to be multibaggers
In the meantime, there's no shortage of great stocks out there in which you can put your hard earned money to work. But where should you look? The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Read/Post Comments (0) | Recommend This Article (3)

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.

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: 2927138, ~/Articles/ArticleHandler.aspx, 9/4/2015 1:04:32 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...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated Moments ago Sponsored by:
DOW 16,090.29 -284.47 -1.74%
S&P 500 1,920.19 -30.94 -1.59%
NASD 4,679.12 -54.38 -1.15%

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

9/4/2015 12:48 PM
UIS $13.06 Down -0.11 -0.84%
Unisys Corp CAPS Rating: ***