NCR Tops Q1 Earnings & Revenue Estimates, Reaffirms '18 View
Zacks Investment Research | May 01, 2018 10:35PM ET
NCR Corporation (NYSE:NCR) started 2018 on a strong note, reporting better-than-expected results for the first quarter. The company’s non-GAAP earnings from continuing operations of 56 cents per share surpassed the Zacks Consensus Estimate of 44 cents. The reported figure also came in ahead of management’s guided range of 41-47 cents. On a year-over-year basis, however, the tally remained flat.
Revenues
The company’s revenues of $1.52 billion outpaced the Zacks Consensus Estimate of $1.47 billion, as well as came in 2.6% higher year over year.
The company’s Software revenues, on a reported basis, were up 2% to $460 million. The upswing was primarily due to a 9% and 8% increase in Cloud and Professional Services, which was partially offset by an 18% and 1% decline in Software License and Software Maintenance revenues, respectively.
Services revenues climbed 8% to $601 million on a reported basis. This upswing primarily stemmed from the company’s “channel transformation” initiatives, which resulted in growth of hardware maintenance and implementation services.
Hardware revenues, however, slipped 3% year over year, on a reported basis, to $456 million. Segment revenues from ATM, SCO and IPS declined 7%, 24% and 100%, respectively, which negatively impacted the overall hardware revenues. The decline in ATM revenues was due to low backlog at the beginning of the first quarter.
However, revenues from POS ascended 19%, which slightly offset the decline of the other three segments. The rise in POS revenues was chiefly attributable to “store transformation trends”.
NCR Corporation Price, Consensus and EPS Surprise
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