The 10-second takeaway
For the quarter ended March 31 (Q1), Unisys missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Unisys notched revenue of $809.9 million. The four analysts polled by S&P Capital IQ expected a top line of $874.3 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $928.4 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 -$0.26. The four earnings estimates compiled by S&P Capital IQ averaged $0.72 per share. Non-GAAP EPS were -$0.26 for Q1 against $0.30 per share for the prior-year quarter. GAAP EPS were -$0.77 for Q1 against $0.30 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 19.9%, 440 basis points worse than the prior-year quarter. Operating margin was 0.2%, 670 basis points worse than the prior-year quarter. Net margin was -3.7%, 560 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $899.3 million. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $3.66 billion. The average EPS estimate is $3.95.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 193 members out of 264 rating the stock outperform, and 71 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 $25.38.
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