Unisys (UIS) Shares Down Despite Reported Growth

By Tamara Parker • Wednesday, February 21 12:09 • Permanent Link

Unisys Corporation (NYSE: UIS) has reported its financial results for the fourth quarter and full year of 2023. The company exceeded its 2023 upwardly revised revenue and profitability guidance, delivering a strong performance across various financial metrics. The full-year revenue grew by 1.8% year over year, or 1.6% in constant currency, while the operating profit margin for the full year was reported at 3.8%. Additionally, the company saw significant growth in contract signings, with the ex-license and support (ex-L&S) total contract value (TCV) increasing by 27% year over year for the full year and by 137% year over year in the fourth quarter.

Peter A. Altabef, Chair and CEO of Unisys, commented on the company's performance, stating, "Our fourth quarter performance capped a successful year for Unisys. In 2023, we exceeded our upwardly revised full-year guidance ranges. During the year, we grew our backlog, signed 18% more new business TCV than the prior year, and expanded our new business pipeline."

Deb McCann, Chief Financial Officer of Unisys, also expressed satisfaction with the company's progress, saying, "We are particularly pleased with our full-year free cash flow performance, which improved by nearly $70 million year-over-year. We also continued to execute our pension management strategy with two annuity purchases that transferred an aggregate of approximately $500 million in pension liabilities to a third-party insurer."

Financial Highlights: Full-year revenue growth of 1.8% year over year, or 1.6% in constant currency Full-year operating profit margin of 3.8% Full-year operating cash flow of $74.2 million compared to $12.7 million for 2022 Ex-L&S TCV increased 27% year over year for the full year and 137% year over year in the fourth quarter * Company issues full-year 2024 guidance of (1.5)% to 1.5% year over year constant currency revenue growth and 5.5% to 7.5% non-GAAP operating profit margin

The company's shares have moved -26.0%, and are now trading at a price of $5.77.

For more information, the company's full 8-K submission is available here.

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