Is NCR Still A Sheep In Wolf's Clothing?
Stephen Simpson, CFA
Stephen Simpson, CFA
NCR Corp. Still Undervalued, But Not Helping Its Cause
Stephen Simpson, CFA
Stephen Simpson, CFA
Jan. 27, 2015, 2:13 PM
- NCR Corporation (NCR -3.2%) will report Q4 and full-year results after the close on Tuesday, February 10th. The conference call will begin at 4.30 pm ET.
- Consensus views for Q4 and 2014 are for EPS of $0.78 and $2.63 and revenue of $1.76B (+5.50% Y/Y) and $6.58B (+7.50%), respectively.
Oct. 24, 2014, 9:18 AM
- Believing shares are now properly valued and expectations more realistic, Goldman has upgraded NCR to Neutral, and upped its target by $1 to $26.
- The upgrades comes a day after NCR posted its Q3 report, which confirmed the numbers and commentary provided in the company's Monday warning. On Tuesday, activist Marcato Capital disclosed a 6.5% stake, and nominated a director.
- NCR's Retail Solutions revenue fell 1% Y/Y in Q3 to $489M. Financial services +17% to $899M; Hospitality +4% to $168M; Emerging Industries +6% to $91M. Gross margin fell 300 bps Y/Y to 24.5%.
Oct. 23, 2014, 4:05 PM
- NCR (NYSE:NCR): Q3 EPS of $0.67 misses by $0.03.
- Revenue of $1.65B (+9.3% Y/Y) in-line.
Oct. 22, 2014, 5:35 PM
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Oct. 21, 2014, 1:41 PM
- Marcato Capital has taken a 6.5% stake in NCR, and has nominated managing partner Richard McGuire to serve on the point-of-sale hardware/software's board.
- Marcato says it may talk with NCR about "options for enhancing shareholder value through various strategic alternatives or operational or management initiatives including, but not limited to, improving capital structure and/or capital allocation, strategic transactions, and general corporate strategies."
- The disclosure comes a day after NCR fell 21% on account of reporting weak Q3 numbers and slashing its full-year guidance.
Oct. 20, 2014, 12:50 PM
Oct. 20, 2014, 9:21 AM
Oct. 20, 2014, 8:52 AM
- "Market conditions within the retail industry worsened in the third quarter," says CEO Bill Nuti. "This resulted in our retail customers spending more cautiously than anticipated and further delaying solution rollouts." Nuti also notes heightened data security concerns as causing retailers to shift IT priorities, resources, and capital spending.
- Preliminary Q3 results: Non-pension operating income of $204M vs. previous guidance of $215M-$225M. Non-GAAP EPS of $0.67 is also shy of company expectations, and Street consensus of $0.71.
- Full-year EPS guidance of $2.60-$2.70 per share on revenue of $6.58B-$6.63B compares to $3-$3.10 and $6.75B-$6.85B previously. Free cash flow of $225M-$275M vs. $250M-$300M previously.
- The Q3 earnings report is set for October 28.
- More from Nuti: "Our Financial Services business remains a bright spot, Q3 free cash flow improvement was strong, and our previously announced restructuring program is on track to deliver annual run-rate savings of approximately $90 million by 2016."
- NCR -12% premarket
Oct. 1, 2014, 11:53 AM
- Three companies have collectively paid NCR (NCR -2%) $93.1M for the costs it incurred from April 2012 to the present day to clean up Wisconsin's Fox River. The companies have also agreed to pay half of NCR's cleanup costs going forward.
- In 2012, NCR was ordered by a federal judge to pay part of the costs of removing contaminants from the Fox River. At the time, the total cleanup project was forecast to cost over $1B.
Sep. 2, 2014, 3:48 PM
- Home Depot (HD -2.4%) confirms it's looking into "unusual activity" as it works with law enforcement officials in relation to a possible loss of customer credit card and debit card information.
- Early reports indicate the breach occurred in late April and could involve over 2K Home Depot stores.
- Shares of Home Depot have recouped a bit from their initial slide after the breach report broke. Some retail analysts called the peeling off of $3.5B in market cap somewhat overdone.
- What to watch: If the breach is as large as some banks are reporting, an increased push by the industry toward the adoption of smart card technology could be on the way.
- Related EMV stocks: PAY, NCR, MA, V, OTCQX:IFNNY, NXPI,
Jul. 29, 2014, 4:57 PM
- NCR expects 2014 revenue of $6.75B-$6.85B and EPS of $3.00-$3.10, favorable to a consensus of $6.76B and $3.01.
- The point-of-sale hardware/software vendor is launching a restructuring expected to produce $90M/year in savings by 2014, and result in $150M-$200M in pre-tax charges between this year and next. NCR says it's looking to "strategically reallocate resources to position NCR to focus on our highest growth, highest margin opportunities in the software-driven consumer transaction technologies industry."
- Software-related revenue rose 15% Y/Y excluding the Digital Insight purchase, and 42% to $446M if one includes it. SaaS/cloud software +247% to $125M (+17% exc. Digital Insight), software license/maintenance +12% to $172M, professional services +20% to $149M.
- Hardware sales -3% to $637M, other services +3% to $575M. Software-related revenue was 27% of total revenue.
- Financial services sales +15% (54% of revenue, boosted by Digital Insight), retail -2%, hospitality +8%, "emerging industries" +6%.
- Gross margin +120 bps Y/Y to 29%. SG&A spend +6% to $247M, R&D +16% to $64M.
- Q2 results, PR
Jul. 29, 2014, 4:07 PM
- NCR (NYSE:NCR): Q2 EPS of $0.68 beats by $0.02.
- Revenue of $1.66B (+7.8% Y/Y) misses by $10M.
Jul. 22, 2014, 1:35 PM
- Wedbush reports NCR (NCR -1.6%) has lost deal with Target covering 2,200 stores. Shares are lower on an up day for equities.
- NCR and other point-of-sale hardware/software vendors have reported seeing stronger interest in more secure checkout systems following Target's giant December data breach. Q2 results arrive on July 29.
Jun. 17, 2014, 12:05 PM
- Bloomberg reports Oracle (ORCL +0.9%) is close to buying leading point-of-sale hardware/software vendor Micros (MCRS +17.6%) for ~$5B.
- Micros has soared on the report; its market cap is currently at $5.05B. Peers NCR (NCR +3.4%), VeriFone (PAY +2.2%), and PAR Technology (PAR +4.6%) are also up. Oracle has ticked higher.
- If the report holds, Oracle will be paying ~24x FY15E (ends June '15) EPS. Micros has a long list of retail/hospitality industry clients that Oracle could offer integrated CRM hardware/software solutions to.
- IBM and SAP have each shown an interest in growing software sales to retailers. However, Big Blue sold its POS hardware business to Toshiba in 2012.
Jun. 13, 2014, 5:37 PM
Jun. 10, 2014, 4:36 PM
- NCR is making a voluntary lump sum offer to ~20K ex-employees and other pension beneficiaries that it says it equal to "the present value of an individual's current monthly pension plan benefit."
- NCR has made a priority out of cutting its sizable pension obligations: During last November's investor day, the POS hardware/software firm set a target of cutting its pension funding gap to $100M in 2014 from $250M in 2013 and $461M in 2012.
- The company forecast its total pension liability will fall $600M this year to $4.5B, and that the free cash flow impact of pension expenses would fall to $50M-$75M from $87M in 2013 and $152M in 2012.
NCR Corp. engages in the development, manufacture, and sale of consumer transaction solutions. It operates through the following segments: Financial Services, Retail Solutions, Hospitality, and Emerging Industries. The Financial Services segment provides automated teller machines, payment... More
Industry: Information Technology Services
Country: United States
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