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.
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.
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.
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.
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.
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 this article 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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