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Unisys Shares Soared 21% As Q3 Results Top Estimates(dpa-AFX International Compact Via Acquire Media NewsEdge) WASHINGTON (dpa-AFX) - Shares of Unisys Corp. (UIS) soared more than 21 percent in extended trade on Tuesday after the information technology company reported results for the third quarter that significantly topped analysts' expectations. The company also reported a profit for the quarter compared to a loss last year, reflecting improved margins and double-digit revenue growth amid significantly higher sales of ClearPath enterprise software and servers. "This was a strong quarter for Unisys. We grew our revenue double digits, with growth in both our services and technology businesses, and more than tripled pretax profit," Chairman and CEO Ed Coleman said in a statement. The Blue Bell, Pennsylvania-based company reported net income of $47.8 million or $0.95 per share for the third quarter, compared to a net loss of $11.6 million or $0.26 per share in the prior-year quarter. Results for the latest quarter include $17.9 million of pension expense, while the year-ago quarter included $22.6 million of pension expense. Excluding pension expense, adjusted net income for the quarter was $65.7 million or $1.30 per share, compared to $15.0 million or $0.25 per share in the year-ago quarter. On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude one-time items. Revenues for the quarter increased 11 percent to $882.5 million from $792.1 million in the same quarter last year, and topped Wall Street analysts' consensus estimate of $843.33 million. The company noted that foreign currency translations had a one percentage-point positive impact on revenue. U.S. revenues increased 12 percent from last year, and international revenue grew 11 percent or 8 percent on a constant currency basis, as all regions contributed to growth. Services revenue increased 6 percent year-over-year to $763.0 million, as growth in systems integration and IT outsourcing more than offset declines in infrastructure services. Services backlog at September 30, 2014 was $4.4 billion, down 9 percent from December 31, 2013 levels. Technology revenue also surged 66 percent to $119.5 million from last year, driven by significantly higher sales of ClearPath enterprise software and servers. Operating margin for the quarter expanded 570 basis points to 8.7 percent from last year's 3.0 percent, as gross margin improved 490 basis points from last year. "In our services business, we grew both our systems integration and IT outsourcing revenue. Our technology results benefited from significantly higher sales of our flagship ClearPath enterprise servers. Year to date through the first nine months of 2014, our technology revenue is up 2 percent year over year," Coleman added. UIS closed Tuesday's regular trading session at $19.38, up $0.27 or 1.41% on a volume of 0.79 million shares. The stock soared $4.16 or 21.47% in extended hours trading. Copyright RTT News/dpa-AFX |