- While NCR (NCR -10.5%) nosedived after releasing mixed Q3 results and reiterating its full-year guidance - 9%-11% revenue growth and EPS of $2.70-$2.80 vs. a consensus of 10.2% growth and $2.76 - fellow point-of-sale hardware vendor Micros (MCRS +4.3%) rallied after beating FQ1 estimates and reiterating FY14 (ends June '14) guidance - revenue of $1.295B-$1.32B and EPS of $2.46-$2.50 vs. a consensus of $1.31B and $2.46.
- NCR's Financial Services unit (52% of revenue, makes ATM systems and other hardware) continued to struggle: sales -4% Y/Y vs. -1% in Q2 due to U.S. and European weakness. Meanwhile, excluding $80M in revenue from recently-acquired Retalix, NCR's Retail Solutions unit only saw 2% growth vs. 6% in Q2.
- The Hospitality business was stronger, rising 25% Y/Y vs. 22% in Q2. Emerging Industries sales were flat after dropping 5% in Q2. On its CC (transcript), NCR admitted demand from major U.S. banks remains sluggish, but added financial services orders in China (+12% Y/Y) and India (+72% Y/Y) are healthier.
- Micros' FQ1 beat was fueled by 9.5% Y/Y North American sales growth. EMEA sales rose 3.6%, and Asia-Pac sales fell 3.3%. Sales to food & beverage industry customers were a bright spot, growing 11.1% Y/Y.
at Zacks.com (Nov 5, 2014)