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NCR Corporation (NCR)

  • Feb. 5, 2014, 5:35 PM
  • Jan. 29, 2014, 6:11 PM
    • The WSJ reports Amazon (AMZN) is working on a checkout system for physical retailers that would rely on Kindle tablets and (possibly) credit-card readers, and leverage technology and talent from recently-acquired payments startup GoPago. A launch could happen "as soon as this summer."
    • Such a move would push Amazon into a crowded mobile payments space that already features Square, PayPal, Groupon, Intuit, and a slew of other upstarts, as well as incumbent point-of-sale hardware vendors NCR and VeriFone (PAY). Apple might soon enter the market as well.
    • In addition to competition, Amazon might have to contend with retailer wariness about partnering with a competitor. Sources state Amazon is trying to reel merchants in by giving them the chance to offer promotions/discounts on its site.
    • Amazon is also reportedly thinking of cross-selling merchants complementary services such as site development and data analysis. If major retailers adopt the system, it could provide Amazon with valuable user data about offline purchasing activity.
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  • Jan. 27, 2014, 11:01 AM
    • Apple (AAPL +1.2%) is rising going into today's FQ1 report, and PayPal parent eBay (EBAY -2%) is selling off, after the WSJ reported Apple is hatching plans for a mobile payments service. Point-of-sale hardware vendors VeriFone (PAY -2.3%) and NCR (NCR -2.6%) are also lower.
    • The report left some major questions unanswered. A big one: Will Apple's service only cover transactions taking place in physical stores, or will it also cover mobile e-commerce transactions?
    • The latter would be a much larger threat to PayPal, which handled $27B worth of mobile transactions (largely e-commerce-related) in 2013, but for now only has a small presence in the offline payments realm (the company is trying hard to change that).
    • Given Apple's history, an Apple payments service is unlikely to support Android. That could limit merchant interest in regions where Android has a dominant smartphone share (the EU, Latin America, parts of Asia), assuming Apple plans to take the service overseas.
    • Carl Icahn mentioned payments as a major growth opportunity for Apple last week, highlighting the company's ability to leverage its 575M+ iTunes accounts, fingerprint sensors, and iBeacon.
    • Analysts expects Apple to report FQ1 EPS of $14.09 (+2% Y/Y) this afternoon, and revenue of $57.46B (+5.4%). Gene Munster believes the Street expects 56M-57M iPhone sales, 24M-25M iPad sales, 4.6M Mac sales, and a gross margin of 37.5% (at the high end of Apple's guidance range).
  • Jan. 13, 2014, 9:56 AM
    • H-P (HPQ +3.7%) and Teradata (TDC +1.8%) have been started at Overweight by Atlantic Securities.
    • BlackBerry (BBRY -6.2%) has been cut to Underperform by Oppenheimer following a major rally over the last four weeks. RBC upgraded shares last Friday.
    • F5 (FFIV +3.7%) has been upgraded to Outperform by William Blair.
    • Qihoo (QIHU +4.3%) has been upgraded to Buy by Stifel, and started at Buy by UBS. Shares fell last Thursday following a report questioning the size of the company's search share gains, and rose the day before thanks to an Alibaba investment rumor.
    • Cree (CREE -6.6%) has been cut to Hold by Stifel.
    • Autodesk (ADSK +1.8%) has been upgraded to Overweight by Morgan Stanley.
    • Skyworks (SWKS +4.7%) has been upgraded to Buy by B. Riley.
    • Red Hat (RHT +4.4%) has been upgraded to Overweight by Morgan Stanley.
    • Fortinet (FTNT +2.1%) has been upgraded to Overweight by Morgan Stanley.
    • HomeAway (AWAY +2%) has been upgraded to Overweight by Barclays.
    • Garmin (GRMN +1.1%) has been upgraded to Outperform by Oppenheimer.
    • Nimble Storage (NMBL +2.2%) has been upgraded to Outperform by Pac Crest. The firm started Nimble and Sector Perform just six days ago.
    • Peregrine Semi (PSMI -9.1%) has been cut to Hold by Deutsche.
    • Sanmina (SANM -7%) has been cut to Underperform by Raymond James.
    • Symantec (SYMC -2.3%) has been cut to Underweight by Morgan Stanley.
    • NCR (NCR +2.2%) has been started at Overweight by JPMorgan, and added to the firm's Focus List.
    • Vipshop (VIPS +1.8%) has been started at Buy by UBS.
    • Parametric Sound (PAMT +4.5%) has been started at Strong Buy by Needham.
  • Dec. 27, 2013, 12:44 PM
    • Target (TGT -0.4%) issues a new security update in which the company says it remains "confident" that PIN numbers of cardholders were not compromised, although encrypted pin data was removed. The assertion runs counter to what some data security bloggers have been maintaining.
    • The data security breach of 40M Target accounts continues to draw the ire of politicians. More Congressmen want the FTC to increase the depths of its probe on the delay of Target's disclosure and the number of lawsuits filed against the company continues to increase.
    • Shares of Target have been somewhat resilient following the security breach, only dropping 0.5% since the story broke.
    • What to watch: Most countries have adopted smart cards which contain data on microchips, instead of magnetic strips, to allow for much better encryption, but the U.S. lags behind. Banks in the U.S. have been hesitant to force the issue due to the pricey upgrades to payments systems the new technology would require for some large retailers mired with older systems. If the timetable for the adoption of smart cards in the U.S. is pushed forward due to the Target fiasco, some point-of-sale hardware firms (NCR, PAY, MCRS, DBD) could pick up extra business.
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  • Dec. 5, 2013, 2:09 PM
    • NCR (NCR -1.3%) is selling $1.1B worth of senior notes - $400M in 2021 notes, $400M in 2023 notes, and $300M in 2025 notes - to help pay for its $1.65B acquisition of online/mobile banking software provider Digital Insight. Moody's had assigned the debt a Ba3 rating. (PR)
    • The point-of-sale hardware/software vendor had $460M in cash/equivalents at the end of Q3, and over $2.2B in debt.
    • Previous: Commentary on the NCR/Digital Insight deal
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  • Dec. 3, 2013, 5:31 PM
    • NCR's (NCR -2.7%) $1.65B acquisition of Digital Insight will help the company conceal its "inability to grow EPS 14-18% organically as guided," says Wedbush, which is reiterating a Neutral.
    • The firm also questions NCR's ability to cross-sell Digital's online/mobile banking software, and thinks it paid a steep price (16x EBITDA), especially since Intuit (INTU) sold Digital to Thoma Bravo for just $1.025B a few months ago. But it's worth noting sources tell Fortune intuit was forced to sell low due to the fact it was "intent on selling Digital Insight at warp speed."
    • Compass Point, which has upgraded NCR to Buy, is more positive. It sees the acquisitions of both Digital Insight and Alaric Systems improving NCR's financial service growth and margin profile, and notes NCR's business mix now looks "much more like major financial technology players such as Fiserv and FIS Global as compared to legacy competitor Diebold."
    • Industry analyst David Albertazzi likes how the deal expands NCR's multi-channel banking reach, given how many transactions have "migrated out of [bank] branches," and thinks ATM could use Digital Insight to create services relying on both ATMs and mobile apps.
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  • Dec. 2, 2013, 4:28 PM
    • NCR is acquiring Digital Insight, a major provider of online/mobile banking software and services, for $1.65B. The company hasn't yet disclosed exactly how the deal will be financed - NCR had $460M in cash at the end of Q3, and over $2.2B in debt - but it does say the purchase will be accretive to 2014 EPS. (PR)
    • NCR also says it has acquired Alaric Systems, a British provider of secure transaction processing and fraud detection software, for $84M from P-E firm Thoma Bravo. That deal is also expected to be accretive to 2014 EPS.
    • The purchases follow NCR's acquisition of retail point-of-sale (POS) software provider Retalix, and represent a huge expansion of the company's efforts to offset slow POS hardware growth (financial services hardware sales have been particularly soft) by ramping its software sales.
    • NCR notes Digital Insight has a customer base of 1K+ financial institutions, and will help it both address the mid-market banking segment and "offer its clients additional solutions for mobile, bill pay and online banking."
    • NCR +1.6% AH. CC at 5PM ET.
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  • Nov. 11, 2013, 2:55 PM
    • NCR (NCR -2.4%) has used its investor day to establish a 2015 EPS guidance range of $3.60-$3.80, and a 2016 range of $4.10-$4.50. The company's 2013 EPS guidance range of $2.70-$2.80 has been reiterated.
    • The point-of-sale hardware vendor is also forecasting 2016 revenue of $7.3B-$7.7B; the 2013 consensus is currently at $6.22B, and the 2014 consensus at $6.59B. Gross margin is expected to rise 300 bps from 2013 levels, and (thanks in part to the Retalix acquisition) software is expected to account for 16%-17% of revenue, up from 12% in 2013 and 7% in 2010. 37% of revenue is expected to come from recurring streams.
    • NCR also predicts its pension funding gap will decline to $100M in 2014 from $250M in 2013, and that its free cash flow impact will decline to $50m-$75M from 2013's $87M and 2012's $152M.
    • The company's core financial services vertical is only expected to see a 4%-6% revenue CAGR from 2013-2016. But hospitality is expected to post a 14%-16% CAGR, retail an 8%-10% CAGR, and emerging industries a 10%-13% CAGR.
    • Investor day slides (.pdf), webcast
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  • Oct. 25, 2013, 6:17 PM
    • 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.
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  • Oct. 25, 2013, 9:44 AM
    • Constant Contact (CTCT +24.9%) has been upgraded to Buy by Needham after issuing mixed Q3 results and strong 2014 revenue guidance (13% growth vs. 11.9% consensus).
    • Sony (SNE +0.6%) has been upgraded to Outperform by Credit Suisse. FQ2 results arrive on Oct. 31.
    • Monolithic Power (MPWR +15.8%) has been upgraded to Outperform by Oppenheimer after beating Q3 estimates and issuing in-line Q4 guidance.
    • ASX (ASX +2%) has been upgraded to Outperform by Bernstein.
    • NCR (NCR -5.7%) has been cut to Neutral by Compass Point after posting mixed Q3 results and reiterating its full-year guidance.
    • Rogers (RCI -0.9%) has been cut to Hold by Canaccord a day after posting Q3 results. Macquarie downgraded shares yesterday.
    • STMicroelectronics (STM -0.6%) has been cut to Neutral by Goldman three days after missing Q3 estimates and providing weaker-than-expected Q4 guidance.
    • WageWorks (WAGE +3.1%) has been started at Buy by SunTrust.
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  • Oct. 24, 2013, 4:06 PM
    • NCR Corp (NCR): Q3 EPS of $0.76 beats by $0.08.
    • Revenue of $1.51B (+5% Y/Y) misses by $0.07B. (PR)
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  • Oct. 24, 2013, 12:10 AM
  • Oct. 23, 2013, 5:35 PM
  • Jul. 30, 2013, 4:10 PM
    • NCR Corp (NCR): Q2 EPS of $0.68 beats by $0.02.
    • Revenue of $1.54B (+9% Y/Y) beats by $0.B. (PR)
    | 1 Comment
  • Jul. 30, 2013, 12:10 AM
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Company Description
NCR Corp is a technology company providing products & services enabling businesses to connect, interact & transact with customer. Its products include ATM & financial services software, point of sale devices, self-service kiosks & software applications.