Shares of information technology company Unisys (UIS -1.55%) tumbled on Wednesday. As of 1 p.m. EDT, the stock was down 16.5%.
The tech stock's sharp move lower was due to Unisys' worse-than-expected third-quarter results. On Tuesday afternoon, Unisys reported revenue and non-GAAP earnings per share that came in below analysts' average forecasts.
The tech company's revenue declined from $495 million in the year-ago period to $488 million. Analysts, on average, were expecting revenue to increase to about $499 million. Unisys posted non-GAAP (adjusted) earnings per share of $0.10, missing analysts' average forecast of $0.16 in per-share earnings.
But management was quick to point out some positives from the quarter. Namely, gross profit and free cash flow both increased year over year. Gross profit was $126.9 million, up from $119.9 million in the year-ago period. This was helped by the company's gross profit margin expanding from 24.2% in the third quarter of 2020 to 26%. Meanwhile, free cash flow rose 14.9% year over year to $39.4 million.
Unisys also announced that its chief financial officer, Mike Thomson, is now slated to become president and chief operating officer. The move will be made official when the company hires a replacement chief financial officer.
Despite the quarter's worse-than-expected results, management reaffirmed its full-year guidance for 0% to 2% year-over-year revenue growth and 17.25% to 18.25% growth in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).