Shares of Unisys (NYSE: UIS) closed Wednesday's trading session 13.2% higher, following Tuesday night's release of impressive second-quarter results. Earlier in the day, Unisys' share prices jumped as much as 17.1% higher.
In the second quarter, the IT consulting and outsourcing veteran saw revenue climbing 0.2% above the year-ago period's figure, stopping at $667 million. On the bottom line, adjusted earnings grew more than 5 times larger and landed at $0.39 per diluted share. The Street consensus had called for earnings near $0.18 per share on sales in the neighborhood of $662 million. Looking ahead, management's full-year guidance for adjusted revenues centered at $2.76 billion, a hair below the current analyst view.
Image source: Getty Images.
The company delivered 2% higher service revenue to make up for declining technology sales. Operating margin improved in both of these reporting segments. Big contract wins during the quarter included a platform to help the federal government organize its biometric data collections, as well as modernizing upgrades to older Unisys systems at the state government level in Hawaii and Georgia.
This stock has now climbed 78.5% higher year to date, bouncing back from a deep winter trough to create a 15% 52-week price increase. The stock still looks inexpensive, trading at 8.8 times forward earnings and 0.3 times trading sales. It's no surprise to see investors embracing these firm signs of life in a company that had fairly recently been left for dead .
10 stocks we like better than Unisys
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Unisys wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .