NCR Corp Third Quarter Earnings Sneak Peek

NCR Corporation (NYSE:NCR) will unveil its latest earnings on Thursday, October 18, 2012. 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.

NCR Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 59 cents per share, a rise of 11.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 59 cents during the last month. Analysts are projecting profit to rise by 28.1% compared to last year’s $2.46.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported net income of 65 cents per share versus a mean estimate of 59 cents. Two quarters ago, it reported profit of 47 cents per share.

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A Look Back: In the second quarter, profit rose more than twofold to $80 million (49 cents a share) from $33 million (21 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7.4% to $1.41 billion from $1.31 billion.

Stock Price Performance: Between July 19, 2012 and October 12, 2012, the stock price fell $2.38 (-9.7%), from $24.44 to $22.06. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 13.6% (+$2.79) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 7.3% (-$1.68) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 6.4% in revenue from the year-earlier quarter to $1.49 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 16.2% in the third quarter of the last fiscal year, 16.1% in the fourth quarter of the last fiscal year and 13.6% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.59 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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