Overview

* Unisys ( UIS ) Q3 revenue falls 7.4% YoY, missing analyst expectations

* Company reiterates full-year non-GAAP operating profit margin guidance

* Unisys ( UIS ) advances pension strategy with $320 mln annuity purchase transaction

Outlook

* Unisys ( UIS ) lowers full-year constant currency revenue guidance to (4.0)% to (3.0)%

* Unisys ( UIS ) reiterates full-year non-GAAP operating profit margin guidance of 8% to 9%

* Company expects momentum in AI solutions to support Ex-L&S gross margin expansion

Result Drivers

* LICENSE & SUPPORT - Strong client retention and consumption in L&S platforms, key to cash generation, per CEO Michael Thomson

* AI SOLUTIONS MOMENTUM - New AI solutions gaining traction, expected to support Ex-L&S gross margin expansion

* PENSION STRATEGY - Annuity purchase transaction to transfer $320 mln of pension liabilities, part of strategy to reduce $600 mln by 2026

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $460.20 $493.78

Revenue mln mln (4

Analysts

)

Q3 Net -$308.90

Income mln

Q3 $24.80

Adjusted mln

Operatin

g Income

Q3 Gross $117.20

Profit mln

Q3 -$33.50

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Unisys Corp ( UIS ) is $7.50, about 55.1% above its November 4 closing price of $3.37

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)