Unisys (UIS) Stock Rating Lowered by Zacks Investment Research
According to Zacks, “Unisys is benefiting from new managed services contracts within the public sector. Expanding Stealth portfolio continues to drive growth. Focus on application-based managed services will enable it to more effectively pursue long-term application outsourcing, associated application modernization and implementation project work. Moreover, the company's cost-control initiatives and efforts toward sales growth in order to overcome operational weaknesses are noteworthy. Estimates have been stable ahead of the company’s first-quarter earnings release. However, Unisys' performance continues to be adversely affected by currency fluctuations and a decline in annual contract value owing to lower contracts and federal business. It also has significant obligations under its U.S. and non-U.S. defined benefit pension plans, which are likely to be a drag on its earnings in the future. Shares have underperformed the industry in the past year.”
A number of other analysts also recently issued reports on UIS. ValuEngine downgraded Unisys from a hold rating to a sell rating in a research report on Saturday, April 13th. SunTrust Banks lowered their price target on Unisys to $17.00 and set a buy rating for the company in a research report on Thursday, April 11th.
Unisys (NYSE:UIS) last issued its quarterly earnings results on Tuesday, February 12th. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.31. The company had revenue of $760.90 million during the quarter, compared to the consensus estimate of $752.00 million. Unisys had a negative return on equity of 10.65% and a net margin of 2.67%. Unisys’s revenue was up 2.2% on a year-over-year basis. During the same period last year, the company earned $1.75 earnings per share. On average, analysts anticipate that Unisys will post 1.97 EPS for the current year.
A number of hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in Unisys by 25.3% in the third quarter. Vanguard Group Inc. now owns 7,942,893 shares of the information technology services provider’s stock worth $162,035,000 after purchasing an additional 1,601,496 shares during the period. Vanguard Group Inc increased its stake in Unisys by 25.3% in the third quarter. Vanguard Group Inc now owns 7,942,893 shares of the information technology services provider’s stock worth $162,035,000 after purchasing an additional 1,601,496 shares during the period. BlackRock Inc. increased its stake in Unisys by 2.0% in the fourth quarter. BlackRock Inc. now owns 7,512,381 shares of the information technology services provider’s stock worth $87,371,000 after purchasing an additional 146,141 shares during the period. Towle & Co. increased its stake in Unisys by 1.3% in the fourth quarter. Towle & Co. now owns 2,389,268 shares of the information technology services provider’s stock worth $27,787,000 after purchasing an additional 29,810 shares during the period. Finally, Portolan Capital Management LLC increased its stake in Unisys by 5.3% in the fourth quarter. Portolan Capital Management LLC now owns 2,128,330 shares of the information technology services provider’s stock worth $24,752,000 after purchasing an additional 107,059 shares during the period.
Unisys Corporation operates as an information technology company worldwide. It operates in two segments, Services and Technology. The Services segment offers cloud and infrastructure services, application services, and business process outsourcing services. The Technology segment designs and develops software, and hardware and other related products.
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