Why Unisys Popped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Unisys (NYS: UIS) popped today by upward of 20% after the company clobbered analyst expectations for its second-quarter earnings.

So what: Revenue in the second quarter totaled $921.3 million, resulting in non-GAAP earnings per share of $1.41. The street was expected just $912.4 million in sales and would have been satisfied with just $0.48 per share in profit. The actual bottom line put the consensus to shame.


Now what: The quarter was boosted by strength in ClearPath sales, the company's enterprise software and services offering, which grew 23% on a constant currency basis. Unisys continues to reduce debt to bolster its balance sheet and is targeting further reductions of $84.5 million. After that's completed, Unisys will have achieved its debt reduction target and have reduced total debt by nearly $1 billion since 2008. Now that's something for investors to be happy about.

Interested in more info on Unisys? Add it to your watchlist byclicking here.

The article Why Unisys Popped originally appeared on Fool.com.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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