posted a 20% jump in earnings per share in the first quarter, as a weak U.S. dollar and double-digit growth in outsourcing boosted results.
Unisys, a provider of information-technology services, reported a profit of $38.5 million, or 12 cents a share, compared with $32.7 million, or 10 cents a share, last year. The results were in line with analysts' estimates as measured by Thomson Financial/First Call. Revenue hit $1.4 billion, up from $1.36 billion in the same period a year ago.
For the second quarter, Unisys said it expects earnings per share of 14 cents to 17 cents a share on modest revenue growth. The company also remains comfortable with its previous expectation for double-digit earnings growth this year, with earnings per share of 77 cents to 82 cents. Analysts are calling for 16 cents in the second quarter and 78 cents for the full year.
"Despite a highly uncertain geopolitical environment, we met our earnings and revenue targets for the quarter," said Chairman and Chief Executive Lawrence Weinbach.
Weinbach said first-quarter results were particularly impressive given that pension income declined to about $6 million from $38 million in the year-ago quarter. He noted that a weaker dollar boosted earnings by 4 percentage points and said growth in the firm's services business was driven by double-digit growth in outsourcing. Demand for enterprise security services remained strong, and the firm's technology business was aided by strong sales of its high-end
-based servers, he said.
"I was particularly pleased by our new orders in the first quarter," Weinbach added. "We showed substantial double-digit growth in our orders."
Overall, the firm closed more than $800 million of long-term services business in the first quarter.