The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Unisys missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins dropped, net margins grew.
Unisys logged revenue of $985.3 million. The three analysts polled by S&P Capital IQ expected revenue of $1.05 billion. Sales were 5.7% lower than the prior-year quarter's $1.04 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.94. The two earnings estimates compiled by S&P Capital IQ averaged $1.50 per share. GAAP EPS of $1.94 for Q4 were 15% lower than the prior-year quarter's $2.29 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 28.4%, 140 basis points worse than the prior-year quarter. Operating margin was 12.3%, 60 basis points worse than the prior-year quarter. Net margin was 10.0%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $887.0 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $3.85 billion. The average EPS estimate is $3.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 195 members out of 265 rating the stock outperform, and 70 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Unisys a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Unisys is hold, with an average price target of $34.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.