The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Unisys missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Unisys logged revenue of $877.4 million. The four analysts polled by S&P Capital IQ predicted net sales of $926.4 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.02 billion.
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 -$0.28. The three earnings estimates compiled by S&P Capital IQ averaged $0.68 per share. GAAP EPS were -$0.28 for Q3 versus $1.63 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 24.9%, 300 basis points worse than the prior-year quarter. Operating margin was 7.0%, 410 basis points worse than the prior-year quarter. Net margin was -1.0%, 910 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $927.5 million. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $3.65 billion. The average EPS estimate is $2.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 193 members out of 265 rating the stock outperform, and 72 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Unisys a green thumbs-up, and 17 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 $27.00.
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