Unisys Earnings Cheat Sheet: Shares Crushed 11% After Report
Unisys Earnings Cheat Sheet for the First Quarter
Results: Loss widened to $39.4 million (95 cents/diluted share) from a loss of $11.6 million (loss of 27 cents/share).
Revenue: Fell 8.7% to $911.2 million YoY.
Actual vs. Wall St. Expectations: UIS fell short of the mean analyst estimate of a loss of 10 cents/share. Estimates ranged from a loss of one cent per share to a loss of 15 cents per share.
Quoting Management: “Our first-quarter results were negatively impacted by greater than anticipated softness in our U.S. Federal business associated with the budget impasse in Washington,” said Unisys Chairman and CEO Ed Coleman. “Outside of our Federal business, IT outsourcing revenue grew nine percent, marking the fifth consecutive quarter of year-over-year growth. Sales of our ClearPath systems again grew following full-year growth in 2010. In addition, we significantly strengthened our balance sheet over the last 60 days by reducing our debt by $390 million and cutting our annual interest expense in half.
Key Stats: UIS’ loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $99.2 million in the fourth quarter of the last fiscal year, a profit of $28.3 million in the third quarter of the last fiscal year and $120.2 million in the second of the last fiscal year.
Over the last five quarters, revenue has fallen an average of 11% year over year. The biggest drop came in the third quarter of the last fiscal year, when revenue fell 17.2% from the year earlier quarter.
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 Ariba, Inc. (NASDAQ:ARBA).
Today’s Performance: Shares of UIS are down 11% today: