The 10-second takeaway
For the quarter ended March 31 (Q1), NCR beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share expanded significantly.
Margins grew across the board.
NCR chalked up revenue of $1.41 billion. The six analysts polled by S&P Capital IQ expected to see revenue of $1.33 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $1.24 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 $0.54. The eight earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. Non-GAAP EPS of $0.54 for Q1 were 15% higher than the prior-year quarter's $0.47 per share. (The prior-year quarter included -$0.06 per share in earnings from discontinued operations.) GAAP EPS of $0.36 for Q1 were 112% higher than the prior-year quarter's $0.17 per share. (The prior-year quarter included -$0.06 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 26.2%, 220 basis points better than the prior-year quarter. Operating margin was 6.0%, 170 basis points better than the prior-year quarter. Net margin was 4.3%, 200 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $6.32 billion. The average EPS estimate is $2.73.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 268 members out of 293 rating the stock outperform, and 25 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give NCR a green thumbs-up, and six 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 $32.43.
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