The 10-second takeaway
For the quarter ended June 30 (Q2), NCR met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share grew.
Gross margins grew, operating margins expanded, net margins dropped.
NCR logged revenue of $1.54 billion. The five analysts polled by S&P Capital IQ predicted revenue of $1.54 billion on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $1.41 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 $0.68. The eight earnings estimates compiled by S&P Capital IQ averaged $0.66 per share. Non-GAAP EPS of $0.68 for Q2 were 4.6% higher than the prior-year quarter's $0.65 per share. (The prior-year quarter included $0.08 per share in earnings from discontinued operations.) GAAP EPS of $0.51 for Q2 were 4.1% higher than the prior-year quarter's $0.49 per share. (The prior-year quarter included $0.08 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 27.8%, 250 basis points better than the prior-year quarter. Operating margin was 9.1%, 160 basis points better than the prior-year quarter. Net margin was 5.6%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $6.32 billion. The average EPS estimate is $2.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 275 members out of 300 rating the stock outperform, and 25 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 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 $33.43.
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.