Stock down 28% as company reports significant loss

  • Unisys shares drop 28% after swinging to a 4Q loss
  • Stock is now in negative territory year-to-date
  • Company posts a loss of $165.3 million in the fourth quarter
  • Revenue remains flat at $557.6 million
  • Gross margin falls 160 basis points due to software license renewals
  • Quarterly loss driven by $167.2 million non-cash pension settlement loss

Shares of Unisys sank after the company swung to a hefty loss in the fourth quarter. The stock was down 28% at $5.60 in early trading and is now in negative territory year-to-date. Unisys posted a loss of $165.3 million, compared with a profit of $8.5 million in the same quarter a year ago. Revenue remained flat at $557.6 million. The company’s gross margin fell 160 basis points due to the timing of software license renewals. However, the main driver of the quarterly loss was a $167.2 million non-cash pension settlement loss related to the company’s purchase of an annuity contract that reduced pension liabilities.

Factuality Level: 9
Factuality Justification: The article provides specific details about Unisys’ financial performance in the fourth quarter, including the reasons behind the loss and the impact on the stock price. The information is factual and based on financial data reported by the company.
Noise Level: 3
Noise Justification: The article provides relevant information about Unisys’ financial performance in the fourth quarter, including details about the loss, revenue, and factors contributing to the loss. The article stays on topic and supports its claims with specific numbers and explanations. However, it lacks in-depth analysis, antifragility considerations, and actionable insights, which prevent it from scoring higher.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Unisys
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Unisys, a technology solutions company. It discusses the company’s swing to a hefty loss in the fourth quarter, which has impacted the shares of Unisys. However, there is no mention of any extreme event or its impact.
Public Companies: Unisys (UIS)
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Reported publicly: www.marketwatch.com