Unisys Corporation Earnings Cheat Sheet: Increased Profit Helps Beat the Street

Unisys Corporation (NYSE:UIS) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for the information technology services company rose to $78.6 million ($1.63 per share) vs. $28.3 million (65 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 6.2% to $1.02 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: UIS beat the mean analyst estimate of 70 cents per share. It beat the average revenue estimate of $926.9 million.

Quoting Management: “This was a strong quarter for Unisys,” said Unisys Chairman and CEO Ed Coleman. “Building on our foundational work to strengthen our competitive and financial position, we grew both total revenue and services revenue and tripled our earnings per share from continuing operations. Strong ClearPath sales, continued growth in our non-U.S. Federal IT outsourcing business, and higher sales of industry solutions within our system integration business more than offset a decline in our U.S. Federal business where market conditions remain challenging. “We remain focused on achieving our strategic financial goals, delivering innovative products and solutions, and providing consistently high levels of service quality to our customers,” Coleman said.

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the third quarter of the last fiscal year, which saw a 17.2% decrease.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 93 cents versus a mean estimate of a loss of 8 cents per share.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 3.2 percentage points to 27.9% from the quarter earlier quarter. In the first quarter, the figure rose 4.5 percentage points to 22.8% from the year earlier quarter.

UIS’ profit in the latest quarter follows losses in the previous two quarters. The company reported a net loss of $7.6 million in the second quarter and a loss of $39.4 million in the first quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.60 per share, down from $1.63 ninety days ago. At $1.31 per share, the average estimate for the fiscal year has fallen from $1.61 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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(Source: Xignite Financials)