The 10-second takeaway
For the quarter ended June 30 (Q2), NCR missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Margins expanded across the board.
NCR booked revenue of $1.41 billion. The seven analysts polled by S&P Capital IQ expected sales of $1.46 billion on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $1.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The nine earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.49 for Q2 were 133% higher than the prior-year quarter's $0.21 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.3%, 470 basis points better than the prior-year quarter. Operating margin was 7.2%, 350 basis points better than the prior-year quarter. Net margin was 5.7%, 320 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 $0.64.
Next year's average estimate for revenue is $5.72 billion. The average EPS estimate is $2.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 272 members out of 294 rating the stock outperform, and 22 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give NCR a green thumbs-up, and seven 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 $28.44.
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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.