Unisys Beats on EPS, but GAAP Results Lag

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Unisys (NYS: UIS) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Unisys missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share dropped significantly.

Gross margins contracted, operating margins dropped, net margins grew.

Revenue details
Unisys logged revenue of $985.3 million. The three analysts polled by S&P Capital IQ expected revenue of $1.05 billion. Sales were 5.7% lower than the prior-year quarter's $1.04 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.94. The two earnings estimates compiled by S&P Capital IQ averaged $1.50 per share. GAAP EPS of $1.94 for Q4 were 15% lower than the prior-year quarter's $2.29 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.4%, 140 basis points worse than the prior-year quarter. Operating margin was 12.3%, 60 basis points worse than the prior-year quarter. Net margin was 10.0%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $887.0 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $3.85 billion. The average EPS estimate is $3.53.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 195 members out of 265 rating the stock outperform, and 70 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Unisys a green thumbs-up, and 20 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Unisys is hold, with an average price target of $34.50.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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