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Unisys (UIS) Up 1.7% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Unisys Corporation (UIS - Free Report) . Shares have added about 1.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Unisys Beats Both Q1 Earnings and Revenues
Unisys reported strong first-quarter 2017 results. The company is poised to grow on the back of improved cost structure and increased free cash flow generation.
Inside the Headlines
Quarterly non-GAAP earnings came in at $0.30 per share compared with $0.11 per share in the year ago quarter. The non-GAAP earnings surpassing the Zacks Consensus Estimate of $0.20.
The company reported a GAAP earnings of $0. 65 per share, as compared with earnings of $0.80 recorded in the year-ago period.
Quarterly revenues were $664.5 million, higher than the Zacks Consensus Estimate of $626 million. The top line also fell short of the prior-year tally of $666.8 million.
Segmental Performance
During the quarter, revenues of the company’s Services segment were decreased to $585.3million compared with $595.1 million in the prior year. The Services segment represented 88% of total revenue in first-quarter.
Revenues of Technology segment summed $79.2 million, up 12% year over year. The Technology segment represented 12% of total revenue in first-quarter.
Margins
The company’s quarterly cost of sales was $544.3 million, down 4.4% year over year. Selling general and administrative expenses came in at $109.1 million versus $110.1 million in the year-ago quarter. Non-GAAP operating margin expanded 340 basis points (bps) to a 6%.
Balance Sheet/Cash Flow
In Mar 31, 2017, cash and cash equivalents came in at $302 million, long-term debt was $195.1 million.
Exiting first-quarter 2017, the company used cash worth $41 million from operating activities versus cash generated from operating activities of $25.9 million recorded in the year-ago period.
Outlook
Unisys reaffirmed its full-year guidance for revenue in the range $2.65-2.75 billion, non-GAAP operating profit margin between 7.25%-8.25% and adjusted free cash flow in the range $130-170 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted downward by 21.3% due to these changes.
At this time, Unisys' stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'C'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and growth investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Unisys (UIS) Up 1.7% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Unisys Corporation (UIS - Free Report) . Shares have added about 1.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Unisys Beats Both Q1 Earnings and Revenues
Unisys reported strong first-quarter 2017 results. The company is poised to grow on the back of improved cost structure and increased free cash flow generation.
Inside the Headlines
Quarterly non-GAAP earnings came in at $0.30 per share compared with $0.11 per share in the year ago quarter. The non-GAAP earnings surpassing the Zacks Consensus Estimate of $0.20.
The company reported a GAAP earnings of $0. 65 per share, as compared with earnings of $0.80 recorded in the year-ago period.
Quarterly revenues were $664.5 million, higher than the Zacks Consensus Estimate of $626 million. The top line also fell short of the prior-year tally of $666.8 million.
Segmental Performance
During the quarter, revenues of the company’s Services segment were decreased to $585.3million compared with $595.1 million in the prior year. The Services segment represented 88% of total revenue in first-quarter.
Revenues of Technology segment summed $79.2 million, up 12% year over year. The Technology segment represented 12% of total revenue in first-quarter.
Margins
The company’s quarterly cost of sales was $544.3 million, down 4.4% year over year. Selling general and administrative expenses came in at $109.1 million versus $110.1 million in the year-ago quarter. Non-GAAP operating margin expanded 340 basis points (bps) to a 6%.
Balance Sheet/Cash Flow
In Mar 31, 2017, cash and cash equivalents came in at $302 million, long-term debt was $195.1 million.
Exiting first-quarter 2017, the company used cash worth $41 million from operating activities versus cash generated from operating activities of $25.9 million recorded in the year-ago period.
Outlook
Unisys reaffirmed its full-year guidance for revenue in the range $2.65-2.75 billion, non-GAAP operating profit margin between 7.25%-8.25% and adjusted free cash flow in the range $130-170 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted downward by 21.3% due to these changes.
Unisys Corporation Price and Consensus
Unisys Corporation Price and Consensus | Unisys Corporation Quote
VGM Scores
At this time, Unisys' stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'C'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and growth investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.