Unisys Corporation (NYSE:UIS) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 15.90%.
Unisys Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.26 in the quarter versus EPS of $0.30 in the year-earlier quarter.
Revenue: Decreased 12.76% to $809.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Unisys Corporation reported adjusted EPS loss of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.59. It missed the average revenue estimate of $852.25 million.
Quoting Management: “This was a difficult quarter for us as lower revenue impacted our bottom-line results,” said Unisys Chairman and CEO Ed Coleman. “We saw lower revenue in our technology business following a strong fourth quarter in 2012 where we benefited from some earlier-than-expected ClearPath revenue. In services, while we were pleased to see growth in our strategic IT outsourcing business in the quarter, we were disappointed in the decline in our project-based systems integration business, where the market for discretionary projects remains soft and where we need to improve our execution.
“We expect continuing challenges as we work through softness in our services business and recognize the need to maintain a competitive cost structure in line with our revenue performance,” Coleman said. “We are focused on reversing the decline in systems integration. In technology, given the variability of our sales from quarter to quarter, we measure this business on an annual basis and continue to focus on maintaining flat revenue for the full year.”
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