The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Unisys beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins contracted.
Unisys booked revenue of $979.3 million. The four analysts polled by S&P Capital IQ predicted revenue of $923.9 million on the same basis. GAAP reported sales were 0.6% lower than the prior-year quarter's $985.3 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 $1.67. The four earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $1.67 for Q4 were 21% lower than the prior-year quarter's $2.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.2%, 80 basis points better than the prior-year quarter. Operating margin was 11.7%, 60 basis points worse than the prior-year quarter. Net margin was 8.8%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $882.0 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $3.64 billion. The average EPS estimate is $3.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 192 members out of 263 rating the stock outperform, and 71 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 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 $25.38.
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