Shares of Unisys (NYSE: UIS) fell as much as 20.1% on Tuesday, following the information technology veteran's fourth-quarter earnings report. The company beat Wall Street's estimates across the board, but investors seemed to be itching for an excuse to take the edge off this stock's market-beating gains in recent months. Management's modest revenue guidance for the next fiscal year gave them a trigger to pull. By 3:25 p.m. EST, shares had partly recovered to a 9.5% drop.
In the fourth quarter of 2020, Unisys saw revenue increase 5.5% year over year to $577 million. Your average analyst was looking for $556 million. Adjusted earnings rose from $0.60 to $0.73 per diluted share, leaving the analyst consensus of $0.45 per share far behind. Adjusted operating margin more than doubled from 6% to 14% thanks to strong renewals of Unisys ClearPath Forward software and service subscriptions.
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Here's Why Unisys Stock Fell as Much as 20% Today