Why IT Company Unisys Shares Are Diving Today

Unisys Corporation UIS shares are slumping on Wednesday.

The company reported fourth-quarter adjusted earnings per share of 51 cents, smashing the street view of 20 cents. Quarterly revenues of $557.60 million beat the analyst consensus of $535.27 million.

Fourth quarter revenue was up 0.1% year over year; however, it marked a decline of 2.1% in constant currency.

Digital Workplace Solutions’ revenue increased 8.9% year over year, driven by new business with existing clients.

Cloud, Applications & Infrastructure Solutions revenue increased 0.1% year over year, a 0.5% decline in constant currency. 

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Enterprise Computing Solutions revenue declined in the fourth quarter 10.0% YoY, or a 12.2% decline in constant currency. 

The company held cash and equivalents as of December 31, 2023, of $387.7 million.

Outlook: For FY24, the company expects revenue growth in constant currency in the range of (1.5)% to 1.5%.

The company expects non-GAAP operating profit margin in the range of 5.5% to 7.5%.

Price Action: UIS shares are trading lower by 26.3% to $5.75 on the last check Wednesday.