Shares of Unisys (NYSE:UIS) soared on Wednesday after the technology services and solutions provider blew past analyst estimates for its second-quarter results. Unisys beat expectations across the board, posting its strongest revenue growth in more than 20 years. The stock was up 21.3% at 12:20 p.m. EDT.
Unisys reported second-quarter revenue of $753.8 million, up 12.9% year over year, $64.3 million above the average analyst estimate. Revenue grew at a faster 16.5% rate on a constant-currency basis.
Services revenue was $653.4 million, up 11.4% year over year, while technology revenue was $100.4 million, up 24.4% year over year. Revenue from the U.S. Federal sector grew 33% year over year, which helped drive the company's record growth.
Non-GAAP (adjusted) earnings per share came in at $0.87, up from $0.39 in the prior-year period and $0.58 better than analysts were expecting. GAAP EPS was $0.42, which was up from $0.07.
"We have seen levels of growth in recent quarters that the company has not experienced in many years and the second quarter represents the highest quarterly growth rate we've seen in over 20 years," said Unisys CFO Mike Thomson during the earnings call.
Unisys reiterated its full-year guidance, which calls for adjusted revenue growth between 2% and 5%, non-GAAP operating margin between 8.25% and 9.25%, and adjusted EBITDA margin between 14% and 16%.
With guidance remaining the same for the year despite a very positive second quarter, some deals may have been pulled forward into the second quarter. The second half of the year may not be quite as strong for Unisys as a result, but that hasn't deterred investors from bidding up the stock.