Why NCR Corporation Shares Tumbled Today

Is NCR's drop meaningful? Or just another movement?

Apr 30, 2014 at 5:12PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of NCR Corporation (NYSE:NCR) fell more than 10% in Wednesday's early trading, then partially recovered to close down 6% after the company turned in solid first-quarter results, but lowered its full-year 2014 guidance.

So what: Quarterly revenue increased 8% to $1.52 billion, including 45% growth in software-related revenue to $395 million. This translated to adjusted earnings of $0.50 per diluted share. Analysts, on average, were only looking for earnings of $0.48 per share on sales of $1.52 billion.

However, NCR followed by reducing its 2014 top-line guidance, and now sees full-year revenue in the range of $6.75 billion to $6.85 billion, or year-over-year growth of roughly 10% to 12%. NCR had previously told investors to expects sales to increase 12% to 14%. Curiously, 2014 adjusted earnings per share are still expected to be roughly $3.00 to $3.10 -- though CEO Bill Nuti admitted they will likely "be at the lower end of this range based on what we are seeing today."

Analysts, for their part, were modeling 2014 earnings of $3.05 per share, but on revenue at the high end of NCR's expected range, at $6.85 billion.

Now what: Nuti blamed a "challenging market in Retail Solutions" for the guidance shortfall, which isn't ideal, but also doesn't mean NCR is a broken business. With shares currently trading at just 10 times the low end of NCR's expected 2014 earnings range, I think today's pullback could represent an attractive entry point for patient long-term investors.

These six stock picks are poised for incredible growth
But if NCR doesn't whet your appetite for growth, you're in luck! They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his six carefully chosen picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers