Why Unisys Shares Tanked
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) tanked today by as much as 16% after the company reported third-quarter earnings and missed top-line estimates.
So what: Revenue in the third quarter fell 14% to $877 million, which was short of the $912.4 million that investors were expecting the company to report. On the bright side, non-GAAP earnings per share came in at $0.85, well ahead of the $0.48 per share profit that the market would have been satisfied with.
Now what: However, on a GAAP basis, Unisys reported a net loss of $0.28 per share. The two primary adjustments relate to $23.1 million in debt reduction charges and $28.9 million in increased pension expense. The company has now completed its $1 billion multiyear debt reduction program ahead of schedule, and has just $211 million of total debt left. It seems investors are more focused on the top-line miss, though.
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The article Why Unisys Shares Tanked originally appeared on Fool.com.Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.