On Jan. 25, NCR (NYSE:NCR) released fourth-quarter earnings for the period ended Dec. 31, 2006.

  • Revenues were up 5.5%, backed by a 15% increase in sales from Teradata Data Warehousing, expected to be spun off this year.
  • NCR raised its 2007 earnings guidance by $0.05, to $2.45-$2.55 per share, on lower-than-previously-expected pension expense in 2007.
  • The company's capital spending increased 145.5% because of new initiatives and increased investment in software development and corporate infrastructure.
  • NCR carries a two-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$1,811

$1,717

5.5%

Net Profit

$174

$150

16.0%

EPS

$0.96

$0.81

18.5%

Diluted Shares

181.2

185.9

(2.5%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

30.3%

30.8%

(0.4)

Operating Margin

11.3%

10.0%

1.4

Net Margin

9.6%

8.7%

0.9

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$947

$810

16.9%

Accounts Rec.

$1,408

$1,305

7.9%

Inventory

$677

$595

13.8%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$534

$490

9.0%

Long-Term Debt

$306

$305

0.3%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

$194

$211

(8.1%)

Capital Expenditures

$54

$22

145.5%

Free Cash Flow

$140

$189

(25.9%)



Find out why Fools always follow the money.

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Related Foolishness:

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