Unisys Corporation (NYSE:UIS) reversed to a profit in the first quarter, beating Wall Street estimates. Unisys is a worldwide information technology company. The company provides a portfolio of IT services, software, and technology that solves critical problems for clients.
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Unisys Earnings Cheat Sheet for the First Quarter
Results: Reported a profit of $17.4 million (30 cents per diluted share) in the quarter. Unisys Corporation had a net loss of $39.4 million or a loss 95 cents per share in the year-earlier quarter.
Revenue: Rose 1.9% to $928.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Unisys Corporation reported adjusted net income of 97 cents per share. By that measure, the company beat the mean estimate of 21 cents per share. It beat the average revenue estimate of $886.8 million.
Quoting Management: “We are pleased to report both increased profits and higher revenue in the first quarter,” said Unisys Chairman and CEO Ed Coleman. “We have grown revenue year over year for two of the last three quarters despite softness in our U.S. Federal government business. We also retired an additional $66 million of debt during the quarter. Since September 2010, we have reduced our debt by more than $540 million, or nearly two thirds, and cut annualized interest expense by $69 million. We are focused on continuing our progress in 2012 as we work toward achieving our strategic and financial objectives.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 58 cents in the fourth quarter of the last fiscal year, by 93 cents in the third quarter of the last fiscal year, and by $1.01 in the second quarter of the last fiscal year.
Margins increased in the fourth quarter of the last fiscal year after dropping the quarter before. Gross margins grew to 24.3%, up 1.5 percentage points from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 1.3 percentage points to 28.4% from the year earlier quarter.
Over the last five quarters, revenue has fallen an average of 3.5% year-over-year. The biggest drop came in the second quarter of the last fiscal year, when revenue fell 11.3% from the year-earlier quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 74 cents a share to 51 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $3.24 a share to $2.70 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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