UIS Earnings Prediction
The chart below shows how UIS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UIS sees a +10.11% change in stock price 10 days leading up to the earnings, and a +18.10% change 10 days following the report. On the earnings day itself, the stock moves by -6.96%. This data can give you a slight idea of what to expect for the next quarter's release.
UIS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
497.00M
6.97%
3.93%
Gross Margin
29.18%
42.27%
7.44%
Operating Margin
9.84%
367.39%
104.57%
Net Margin
-12.45%
18.23%
377.01%
EPS
-0.89
-21.92%
423.53%
No Data Available
UIS Earnings Analysis
Unisys Corporation Corporation (UIS.N) Earnings Conference Call
Positive
Third Quarter Revenue Increase: 1. Revenue Growth: Unisys reported third quarter revenue of $497 million, reflecting a 7% year-over-year increase and an 8.2% increase in constant currency, keeping the company on track to meet its full-year revenue guidance.
Client Acquisition Growth: 2. New Business Signings: New business total contract value (TCV) grew 50% year-over-year in the third quarter, with new logo TCV more than doubling for the third consecutive quarter, indicating strong client acquisition and growth potential.
Free Cash Flow Increase: 3. Increased Free Cash Flow Guidance: The company raised its full-year free cash flow expectations from approximately $10 million to approximately $30 million, driven by improved profitability and lower legal and restructuring payments.
Gross Margin Improvement: 4. Gross Margin Expansion: Third quarter gross margin improved to 29.2%, up 870 basis points year-over-year, primarily due to increased profitability in License and Support Solutions, reflecting operational efficiency initiatives.
Backlog Increase Insights: 5. Backlog Growth: Unisys exited the quarter with a backlog of $2.8 billion, an 18% increase year-over-year, indicating strong future revenue visibility and growth potential.
Negative
Ex-L&S Revenue Decline: 1. Decline in Ex-L&S Revenue: Third quarter revenue excluding License and Support (Ex-L&S) was $393 million, reflecting a decline of 1.3% year-over-year and only a marginal increase of 0.1% in constant currency.
Worsening GAAP Net Loss: 2. Significant GAAP Net Loss: The company reported a GAAP net loss of $62 million for the third quarter, compared to a net loss of $50 million in the same period last year, indicating worsening financial performance.
Goodwill Impairment Impact: 3. Goodwill Impairment: A noncash goodwill impairment of $39 million was recorded in the DWS segment, reflecting challenges in the market and impacting overall financial health.
Decline in Digital Solutions Revenue: 4. Weak Digital Workplace Solutions Performance: Digital Workplace Solutions revenue decreased by 7.1% year-over-year to $131 million, primarily due to lower discretionary volume with clients.
Revenue Growth Expectations Downgrade: 5. Lowered Revenue Growth Expectations: The company expects full year Ex-L&S revenue growth to be near the low end of the previous range of 1.5% to 5% in constant currency, indicating a slowdown in growth prospects.
UIS FAQs
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UIS Earning Call Sentiment
Unisys Corporation (UIS) Q3 2024 Earnings Call Transcript
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00:00
00:00
UIS.N
0%Positive
The earnings call highlights strong financial performance with a 7% revenue increase, improved gross margins, and a significant rise in License and Support revenue. Despite some declines in specific segments, the company’s optimistic guidance and increased free cash flow expectations are positive indicators. The Q&A session revealed strong pricing power and higher renewal volumes, reinforcing a positive outlook. However, concerns about discretionary business and unclear management responses slightly temper the sentiment. Overall, these factors suggest a positive stock price movement in the short term.
