What: Shares of Unisys Corporation jumped as much as 19% today after reporting earnings and some new contracts.
So what: Third-quarter revenue fell 16% to $739 million and the company swung from a profit of $0.95 per share a year ago to a loss of $0.19 per share. But that still came in well ahead of the $1.19-per-share loss that Wall Street expected.
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A Unisys-led consortium also won a contract to enhance border control and data security for the EU. Separately, AirAsia decided to move to cloud-based Unisys Logistics Management System to manage cargo across its facilities.
Now what: Management is confident that cost-cutting measures will help the company's long-term profitability and this may be a sign of that progress. But Unisys did report a third straight loss in the third quarter and analysts aren't expecting a profit until late 2016. I like the progress Unisys made, but I'd like to see more profitability before jumping into this stock, especially after the pop we saw today.
The article Why Unisys Corporation's Shares Popped Today originally appeared on Fool.com.
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