Why IT Company Unisys Shares Are Diving Today
Portfolio Pulse from Nabaparna Bhattacharya
Unisys Corporation (NYSE:UIS) shares plummeted after reporting Q4 earnings. Despite beating earnings and revenue expectations, with adjusted EPS at 51 cents against a 20 cents forecast and revenues of $557.60 million surpassing the $535.27 million estimate, shares dropped 26.3% to $5.75. The slight year-over-year revenue increase of 0.1% translates to a 2.1% decline in constant currency. Segment-wise, Digital Workplace Solutions saw an 8.9% revenue increase, Cloud, Applications & Infrastructure Solutions had a marginal 0.1% increase, and Enterprise Computing Solutions revenue fell by 10.0%. The company's FY24 outlook anticipates a revenue growth range of (-1.5)% to 1.5% and a non-GAAP operating profit margin between 5.5% to 7.5%.
February 21, 2024 | 5:34 pm
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NEGATIVE IMPACT
Unisys Corporation shares fell sharply by 26.3% to $5.75 after Q4 earnings report, despite beating EPS and revenue forecasts. The company's mixed FY24 outlook and slight revenue growth in constant currency terms may concern investors.
Despite Unisys Corporation beating earnings and revenue expectations for Q4, the stock price dropped significantly. This decline can be attributed to the company's modest year-over-year revenue growth and the mixed outlook for FY24, which likely raised concerns among investors about future growth prospects. The sharp decline in stock price reflects the market's reaction to these factors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100