The 10-second takeaway
For the quarter ended March 31 (Q1), Unisys beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share improved.
Margins expanded across the board.
Unisys booked revenue of $928.4 million. The three analysts polled by S&P Capital IQ expected to see revenue of $886.2 million on the same basis. GAAP reported sales were 1.9% higher than the prior-year quarter's $911.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The two earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS were $0.30 for Q1 against -$0.95 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.3%, 150 basis points better than the prior-year quarter. Operating margin was 6.9%, 230 basis points better than the prior-year quarter. Net margin was 1.9%, 620 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $928.6 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $3.79 billion. The average EPS estimate is $2.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 196 members out of 265 rating the stock outperform, and 69 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Unisys a green thumbs-up, and 19 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 $28.50.
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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.