NCR Earnings: Here’s Why the Stock is Down Now

NCR Corp. (NYSE:NCR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.37%.

NCR Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.62% to $0.68 in the quarter versus EPS of $0.65 in the year-earlier quarter.

Revenue: Rose 8.94% to $1.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: NCR Corp. reported adjusted EPS income of $0.68 per share. By that measure, the company beat the mean analyst estimate of $0.66. It missed the average revenue estimate of $1.54 billion.

Quoting Management: “Solid second quarter results were driven by strong growth in our Retail and Hospitality businesses and continued steady performance in Financial Services,” said Bill Nuti, Chairman and CEO of NCR. “The growing contribution of software and services offerings to our revenue mix is delivering profitable growth and margin expansion, further aided by the strong performance of our recently acquired Retalix business. Innovations in key transaction technology areas like omni-commerce and financial services branch transformation are generating significant customer activity across our core business verticals and further differentiating NCR with our customers globally. We enter the second half of the year confident in our outlook, with strong momentum across our lines of business and a sharp focus on continuing to innovate and deliver solutions that create growth opportunities for our customers.”

Key Stats (on next page)…

Revenue increased 8.87% from $1.41 billion in the previous quarter. EPS increased 25.93% from $0.54 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.71 to a profit $0.70. For the current year, the average estimate has moved up from a profit of $2.73 to a profit of $2.75 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)