Bloomberg News

Unisys Surges Most Since 2009 After Profit Tops Estimates

October 25, 2011

(Updates with share price in second paragraph)

Oct. 25 (Bloomberg) -- Unisys Corp. gained the most in 2 1/2 years after the producer of mainframes and computer services reported profit that beat analysts’ estimates.

Unisys, based in Blue Bell, Pennsylvania, rose 31 percent to $26.30 at the close in New York, the biggest gain since April 17, 2009. The stock had dropped 23 percent this year before today.

Third-quarter profit excluding some items advanced to $1.63 a share, more than double the average estimate in a Bloomberg survey. Analysts had forecast 77 cents.

The company said growth in its non-U.S. Federal IT outsourcing business and higher sales in industry solutions offset a decline in its U.S. Federal business. In the latter unit, “market conditions remain challenging,” Chief Executive Officer Edward Coleman said in a statement yesterday.

“Unisys is a big beneficiary of the change toward cloud computing,” said Ned Davis, an analyst with WM Smith &Co. in Denver, referring to data centers that run software on the Web instead of their own servers. “As companies move to the cloud, there is a host of security issues. And Unisys has a history providing security products.” His company doesn’t have a rating system.

-- Editors: Niamh Ring, James Callan

#<230196.8336192.2.1.95.14779.96>#

#<117117.4371737.2.1.95.14779.25># -0- Oct/25/2011 20:57 GMT

To contact the reporter on this story: Xu Wang in New York at xwang206@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


Soul Searcher
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus