The 10-second takeaway
For the quarter ended June 30 (Q2), Unisys met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share increased.
Margins grew across the board.
Unisys recorded revenue of $921.3 million. The four analysts polled by S&P Capital IQ anticipated a top line of $918.3 million on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $937.2 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 $0.99. The four earnings estimates compiled by S&P Capital IQ forecast $0.51 per share. GAAP EPS were $0.99 for Q2 compared to -$0.27 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 26.4%, 360 basis points better than the prior-year quarter. Operating margin was 8.6%, 350 basis points better than the prior-year quarter. Net margin was 5.5%, 630 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $984.9 million. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $3.82 billion. The average EPS estimate is $2.92.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 195 members out of 264 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 $25.67.
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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 the 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 don't 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.