Unisys Corporation Earnings Cheat Sheet: Swinging to a Loss and Missing Estimates
Unisys Corporation (NASDAQ:UIS) swung to a loss in the second quarter, missing analysts’ forecast. Unisys Corporation is a worldwide information technology company. It provides a portfolio of IT services, software, and technology that solves critical problems for clients.
Unisys Earnings Cheat Sheet for the Second Quarter
Results: Swung to a loss of $11.6 million (27 cents per diluted share) in the quarter. The information technology services company had net income of $120.2 million or $2.77 per share in the year earlier quarter.
Revenue: Fell 11.3% to $937.2 million from the year earlier quarter.
Actual vs. Wall St. Expectations: UIS fell short of the mean analyst estimate of a loss of 8 cents per share. Analysts were expecting revenue of $951 million.
Quoting Management: “Our second-quarter results were impacted by continued softness in the U.S. Federal marketplace and lower sales of ClearPath systems,” said Unisys Chairman and CEO Ed Coleman. “In spite of this, we made important progress in the quarter against our three-year financial goals. Outside the U.S. Federal business, our overall services revenue was essentially flat year over year and we grew our IT outsourcing revenue for the sixth consecutive quarter.”
Revenue has fallen in the past four quarters. Revenue declined 8.7% to $911.2 million in the first quarter. The figure fell 13.6% in the fourth quarter of the last fiscal year from the year earlier and dropped 17.2% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 11 cents with a loss of -21 cents versus a mean estimate of a loss of 10 cents per share.
The company’s cost of sales fell 5.8% from a year earlier to $723.5 million. Last quarter, cost of sales was 77.2% or revenue versus 72.7% a year earlier.
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).
(Source: Xignite Financials)