NCR Corporation Earnings: Swinging to a Loss After Two Quarters of Profit

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NCR Corporation (NYSE:NCR) reported its results for the fourth quarter. NCR is a global technology company that provides solutions for industries including financial services, retail and hospitality, travel and gaming, healthcare and public sector, entertainment and software and technology services.

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NCR Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $9 million (6 cents per diluted share) in the quarter. The information technology services company had net income of $39 million or 24 cents per share in the year earlier quarter.

Revenue: Rose 16.7% to $1.64 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NCR Corporation reported adjusted net income of 65 cents per share. By that measure, the company beat the mean estimate of 57 cents per share. It beat the average revenue estimate of $1.58 billion.

Quoting Management: “2011 was a highly successful year for NCR as our consistent execution drove record revenues and gross margin and excellent free cash flow growth,” said Bill Nuti, chairman and CEO of NCR. “We generated strong order growth in our core financial and retail businesses and these businesses closed the year with the highest combined backlog in our history. We also established an attractive third core vertical – Hospitality and Specialty Retail – that furthers our strategy of improving our revenue mix in favor of software and services. Looking ahead, we are operating with an intense focus on mining the significant opportunities in our core businesses, as well as our growing presence in emerging verticals, such as Telecom & Technology and Travel, that leverage both our ability to innovate and our strong services footprint.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 5 cents in the third quarter and by 4 cents in the second quarter.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $16 million in the third quarter, a profit of $33 million in the second quarter and $13 million in the first.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 36 cents a share to 37 cents over the last sixty days. The average estimate hasn’t changed from $1.83 per share for the fiscal year.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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