Unisys Corp. (UIS) Tops Q4 EPS by 31c, Revenues Beat
Unisys Corp. (NYSE: UIS) reported Q4 EPS of $0.97, $0.31 better than the analyst estimate of $0.66. Revenue for the quarter came in at $754.6 million versus the consensus estimate of $751.9 million.
- Revenue grew 2.2 percent year over year to $760.9 million (up 4.8 percent in constant-currency). Non-GAAP adjusted revenue was up 1.3 percent year over year to $754.6 million.
- Operating profit margin was 9.5 percent, down 150 basis points year over year. Non-GAAP operating profit margin was 11.9 percent, down 400 basis points year over year. These margin declines were largely due to a lighter Technology renewal schedule and were also impacted by new business in implementation stage in Services.
- Net income for the fourth quarter was $25.0 million, versus $50.5 million in the fourth quarter of 2017. Diluted earnings per share was $0.41, versus $0.76 in the fourth quarter of 2017. Non-GAAP diluted earnings per share was $0.97 versus $1.75 in the prior-year period. The fourth quarter of 2017 included tax benefits of $29.3 million, or $0.41 per diluted share, driven by unusually high tax credits, principally related to the enactment of the Tax Cut and Jobs Act.
- Adjusted EBITDA for the fourth quarter was $134.5 million, and Adjusted EBITDA margin was 17.8 percent, both down year over year due to the same issues that impacted non-GAAP operating profit margin.
- Fourth quarter operating cash flow was $151.3 million versus $202.7 million in the fourth quarter 2017. Fourth quarter adjusted free cash flow was $123.8 million, versus $207.4 million in the fourth quarter of 2017, largely driven by timing of cash collection due to the U.S. Federal Government shutdown and working capital at the company\'s check-processing joint venture, as noted above. At December 31, 2018, the company had $605 million in cash and cash equivalents.
- TCV was down 49 percent year over year in the fourth quarter, and new business TCV was down 51 percent, due to uncharacteristically high growth of these metrics in the fourth quarter of 2017.
"We are pleased to have grown revenue for the full year 2018 for the first time since 2003. Our results were driven by our strategy of a focused industry go-to-market approach and using security to differentiate our offerings," said Unisys Chairman, President and CEO Peter A. Altabef. "Our expertise in cloud migration and infrastructure modernization and managed digital workplace services which contributed to our growth in 2018, is aligned with ongoing market demand for these services."
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