The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NCR met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP loss per share expanded.
Margins dropped across the board.
NCR recorded revenue of $1.64 billion. The six analysts polled by S&P Capital IQ expected revenue of $1.65 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.72. The eight earnings estimates compiled by S&P Capital IQ forecast $0.70 per share. GAAP EPS were -$0.12 for Q4 versus -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.2%, 160 basis points worse than the prior-year quarter. Operating margin was -0.4%, 540 basis points worse than the prior-year quarter. Net margin was -1.2%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $6.15 billion. The average EPS estimate is $2.59.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 268 members out of 294 rating the stock outperform, and 26 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 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 $26.29.
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