The 10-second takeaway
For the quarter ended March 31 (Q1), NCR beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins grew across the board.
NCR recorded revenue of $1.24 billion. The five analysts polled by S&P Capital IQ wanted to see a top line of $1.22 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.47. The eight earnings estimates compiled by S&P Capital IQ predicted $0.37 per share on the same basis. GAAP EPS of $0.17 for Q1 were 113% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.0%, 480 basis points better than the prior-year quarter. Operating margin was 3.9%, 340 basis points better than the prior-year quarter. Net margin was 2.3%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $5.89 billion. The average EPS estimate is $2.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 259 members out of 282 rating the stock outperform, and 23 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give NCR a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NCR is outperform, with an average price target of $26.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.