Unisys Corporation (NYSE:UIS) stock price has been declining steadily over the last three years; UIS stock plunged from $34 at the beginning of 2014 to 8-year low of $7 in the second quarter of 2017. Declining financial numbers supported the downtrend in shares of the tech company. The stock started rebounding over the last two quarters, amid improvement in its business strategies and changes in its management.
Its financial numbers also improved sharply in the last two quarters, driven by go-to-market focus strategy. The company has differentiated its go-to-market strategy in three diverse ways
- Targeting its focused industries
- Incorporating security into everything they do
- Strengthening its best-in-class leveraged solutions
Its business strategies seem to be working considering robust acceleration in technology revenue and improvement services segment sales. Unisys technology revenue jumped 23% to $154 million in the latest quarter, compared to the year-ago period. Also, the gross margin from technology segment soared by 1,030 basis points year-over-year to 69.5 percent, and the operating profit margin also jumped 1,800 basis points to 57.3 percent.
The CEO believes Unisys has the potential to extend the momentum into 2018. He says, “We had a solid fourth quarter, and signings and backlog entering 2018 are strong. We have begun the new year focused on ongoing execution of our go-to-market strategy and continued financial discipline.”
Its annual contract signings enlarged 22% year over year in fiscal 2017, and total contract value rose 8 percent year over year. The company also experienced healthy growth in its services backlog, which was up 10.3 percent year over year in Q4. Its adjusted free cash flow of $208 million in fiscal 2017 would also allow the company to expand its market penetration. Analysts have the median price target for UIS stock of $15 after its strong fourth quarter results and a healthy improvement in its backlog.
Featured Image: Depositphotos/© leungchopan
