Unisys Corp Earnings: Profit Goes South

Unisys Corporation (NYSE:UIS) reported its results for the fourth quarter. 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 Fourth Quarter

Results: Net income for Unisys Corporation fell to $94.3 million ($1.94 per share) vs. $99.2 million ($2.29 per share) a year earlier. This is a decline of 4.9% from the year earlier quarter.

Revenue: Fell 5.7% to $985.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: UIS reported adjusted net income of $2.08 per share. By that measure, the company beat the mean estimate of $1.50 per share. It fell short of the average revenue estimate of $1.02 billion.

Quoting Management: “We closed 2011 with another quarter of progress toward our financial goals,” said Unisys Chairman and CEO Ed Coleman. “We increased our pretax profit, further reduced debt, and continued to grow both IT outsourcing and systems integration revenue excluding our U.S. Federal business. We were also pleased with strong double-digit services order growth in the quarter.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 93 cents in the third quarter and by $1.01 in the second quarter.

Margins contracted in the third quarter after expanding the quarter before. Gross margin fell 1.3 percentage points to 28.4% from the year earlier quarter. In the second quarter, the figure rose 3.2 percentage points to 27.9% from the year earlier quarter.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 6.2% to $1.02 billion in the third quarter from the year earlier.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 41 cents a share. The average estimate for the fiscal year is $2.29 per share, down from $2.36 ninety days ago.

Competitors to Watch: Intl. Business Machines Corp. (NYSE:IBM), Red Hat, Inc. (NYSE:RHT), EMC Corporation (NYSE:EMC), Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Hewlett-Packard Company (NYSE:HPQ), WidePoint Corporation (AMEX:WYY), Computer Sciences Corp. (NYSE:CSC), SAP AG (NYSE:SAP), and Dell Inc. (NASDAQ:DELL).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com