NCR stock rallies as highest revenue estimates

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NCR stock at the end of the session was up 5.1%.

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NCR

stocks are trading higher late Tuesday after the post of the ATM and point-of-sale system maker better than expected earnings in the first quarter.

For the quarter, NCR (ticker: NCR) reported revenue of $ 1.54 billion, up 3% from a year ago and in line with Street’s estimates. Non-GAAP earnings were $ 1.51 per share, ahead of consensus estimates at $ 1.47 per share. On a GAAP basis, the company earned 19 cents per share. The non-GAAP gross margin increased from 26.9% to 27.5%.

NCR stock at the end of the session was up 5.1% to $ 44.44.

“Our first quarter results represent a great start to the year with increased momentum in our transition to NCR-as-a-Service,” CEO Michael Hayford said in a statement. “Our performance includes strong recurring revenue growth, expanding margins and generating cash flow. We are benefiting from the successful implementation of our strategy and are a stronger company than a year ago.

NCR said revenue from its banking segment was $ 756 million, down 1% from a year ago, which the company attributed to lower sales of ATM equipment, partially offset by rising software and service revenues. Retail segment revenue increased 13% to $ 532 million, in part due to the growth of self-checkout systems. Hospitality sector revenue was $ 179 million, up 6%, with growth in point-of-sale systems and related services.

For the June quarter, NCR sees revenue increase 9% to 10% from a year ago, implying $ 1.62 billion at the high end, ahead of the Street consensus of 1.57 billion. dollars. The company expects free cash flow in the June quarter to be stable with the March quarter level of $ 98 million. He expects the adjusted EBITDA margin (earnings before interest, taxes, depreciation and amortization) for the quarter to be north of 16%, which would be similar to the March quarter level of 16.7%. Adjusted EBITDA in the March quarter was $ 258 million.

Write to Eric J. Savitz at [email protected]

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