NCR To Report Q1 Earnings: Key Aspects To Watch Out For
Zacks Investment Research | Apr 26, 2018 11:09PM ET
NCR Corporation (NYSE:NCR) is slated to release its first-quarter 2018 results on May 1. Notably, the company beat estimates in each of the trailing four quarters, delivering an average positive earnings surprise of 9.7%. In the last reported quarter, the company came up with a positive earnings surprise of 7%.
Let’s see how things are shaping up this time.
Factors to Consider
NCR’s growing exposure in the self-service kiosk space is encouraging. Continuous product launches, growing popularity of its self-service offerings and synergies from acquisitions are the catalysts.
In February, NCR launched payment solutions aimed at retailers and restaurants based out of Europe. In January, it announced that the Union Bank of the Philippines (UBP) had chosen NCR SelfServ 83 powered by its Interactive Teller for its prototype branch.
NCR also opened its global headquarters in Midtown Atlanta in January. Notably, there were certain managerial changes during the quarter. Paul Langenbahn was promoted to the position of COO. Additionally, Bill Nuti, the company’s chairman and CEO decided to step down due to health issues.
We remain cautious about the weakness in the ATM business as large customers across North America, India, the Middle East and Africa delayed their spending. A slow conversion to Windows 10 is the other primary reason behind softness in ATM business. Also, competition from Diebold Inc. and HP Inc., and a high debt burden remain concerns.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or #3 (Hold) has a good chance of beating estimates if it also has a positive Zacks Investment Research
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