NCR Corp Earnings Cheat Sheet: Quarter Lacks Gusto

NCR Corporation (NYSE:NCR) reported its results for the third quarter. NCR is a global technology company that provides solutions for industries including financial services, retail and hospitality, travel and gaming, healthcare and public sector, entertainment and software and technology services.

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NCR Earnings Cheat Sheet for the Third Quarter

Results: Net income for NCR Corporation fell to $16 million (10 cents per share) vs. $83 million (51 cents per share) a year earlier. This is a decline of 80.7% from the year earlier quarter.

Revenue: Rose 16.2% to $1.4 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NCR reported adjusted net income of 53 cents per share. By that measure, the company beat the mean estimate of 48 cents per share. It beat the average revenue estimate of $1.37 billion.

Quoting Management: “Our third quarter featured strong execution and performance in addition to two strategic transactions that will help shape NCR’s future,” said Bill Nuti, chairman and CEO of NCR. “We are winning business across our core and emerging verticals and exited the quarter with backlog at historic levels. We also continue to expand our services business through increased attach rates both in traditional and emerging markets, the latter evidenced by an important new ATM services contract with one of China’s largest banks.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.5% to $1.31 billion in the second quarter. The figure rose 6.4% in the first quarter from the year earlier and climbed 4.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 46 cents versus a mean estimate of net income of 42 cents per share.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 62 cents per share, an increase from 59 cents sixty days ago. The average estimate for the fiscal year has seen a bump from $1.79 per share sixty days ago to $1.82.

Competitors to Watch: Diebold Incorporated (NYSE:DBD), VeriFone Systems, Inc. (NYSE:PAY), Hypercom Corporation (NYSE:HYC), PAR Technology Corporation (NYSE:PAR), Radiant Systems, Inc. (NASDAQ:RADS), Coinstar, Inc. (NASDAQ:CSTR), Hewlett-Packard Company (NYSE:HPQ), Crane Co. (NYSE:CR), USA Technologies, Inc. (NASDAQ:USAT), and Intl. Business Machines Corp. (NYSE:IBM).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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