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.
Is NCR the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add NCR to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.