NCR Goes Negative


NCR (NYS: NCR) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NCR beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share dropped to a loss.

Gross margins improved, operating margins improved, but net margins contracted.

Revenue details
NCR chalked up revenue of $1.64 billion. The six analysts polled by S&P Capital IQ predicted a top line of $1.60 billion. Sales were 17% higher than the prior-year quarter's $1.41 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.65. The seven earnings estimates compiled by S&P Capital IQ averaged $0.57 per share on the same basis. GAAP EPS were -$0.05 for Q4 versus $0.24 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.2%, 190 basis points better than the prior-year quarter. Operating margin was 4.8%, 50 basis points better than the prior-year quarter. Net margin was -0.5%, 330 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $5.97 billion. The average EPS estimate is $2.21.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 257 members out of 280 rating the stock outperform, and 23 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 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 $24.50.

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At the time thisarticle was published 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 ofMotley 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.

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