Unisys Q2 Revenue Beats but $95M Loss and Goodwill Charge Weigh
UIS sits 72% above its 52-week low of $1.97.
Summary
Unisys reported Q2 revenue of $473.5M, down 2% year-over-year but above the $448.88M consensus. The bottom line was hit by a $47.2M goodwill impairment, driving a net loss of $95.3M. Management attributed the revenue decline to timing of ClearPath license renewals, a lumpy but recurring factor. Full-year guidance was reaffirmed: constant currency revenue decline of 3.5% to 5.0% and non-GAAP operating margin of 9-11%. The stock trades at just 3x forward earnings, reflecting deep skepticism despite the revenue beat and maintained outlook.
At the time of this announcement, UIS was trading at $3.39 on NYSE in the Technology sector, with a market capitalization of approximately $252.3M. The 52-week trading range was $1.97 to $4.98. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.