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 solutions provider Unisys
So what: Sales and earnings were down from a year ago -- but who cares about that when you kick the pants of analyst's expectations? Earnings per share of $2.29 crushed estimates of $0.90, coming within shouting distance of last year's quarterly earnings of $2.64 per share.
Now what: The business model transition is going more smoothly than thought, and this performance gives investors plenty of reasons to smile. Unisys has a forward P/E ratio of 13 before today's news, and with $828 million in cash the company has lots of flexibility. Despite the jump today, the relatively low valuation and cash balance make me think Unisys has plenty of room to run higher.
Interested in more info on Unisys? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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