) reached a new 52-week high of $30.70 on Tuesday, May 14, 2013
following a series of deal wins and solid first quarter 2013
results announced on Apr 30.
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NCR CORP-NEW (NCR): Free Stock Analysis
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The closing price of the technology services provider on May 14
was $30.60, representing a robust one-year return of about 36.7%
and a decent year-to-date return of about 16.8%. Average volume
of shares traded over the last three months stands at
NCR delivered positive earnings surprises in the last four
quarters with an average beat of 14.5%. This Zacks Rank #2 (Buy)
company has a market cap of $5.03 billion and a long-term
expected earnings growth rate of 14.8%.
Deal Wins & Recognition
Earlier this week, NCR's Pulse Real-Time smartphone application
was adopted by a "roadside" burger stand, Shake Shack. Then, Elan
Financial Services, renowned payment processing services
provider, announced that it will use NCR APTRA security software
within its network.
Last week, NCR won two automated teller machine (ATM) deals from
the Barclays Bank of Ghana and the ANZ bank of New Zealand.
Apart from this, a research conducted by Retail Banking Research
showed that NCR still leads in the multivendor ATM space.
Retail Solutions Drive NCR's First Quarter
NCR reported adjusted earnings of 54 cents per share, surpassing
the Zacks Consensus Estimate by 35.0% and the year-ago quarter by
14.9%. The beat was mainly attributable to solid performance in
NCR's Retail Solutions segment.
Revenues of $1.41 billion grew 13.3% year over year, led by a
41.0% rise in Retail solutions and a 16.0% increase in
Hospitality revenues. However, the result was partially offset by
a 15.0% revenue decline from the Emerging Industries segment.
During the quarter, NCR completed the acquisition of Retalix
(announced in Dec 2012), which contributed significantly and
supported the growth of Retail Solutions segment.
Given the solid first quarter results, growing product demand and
continued momentum in Retail Solutions and Hospitality segments,
NCR raised its fiscal 2013 guidance.
Revenues for fiscal 2013 are expected to grow in the range of
9.0%-11.0%. NCR expects adjusted earnings per share in the range
of $2.70-$2.80, up from previous expectation of $2.65-$2.75.
Following the first quarter earnings release, analysts seem to be
enthusiastic about NCR's performance and its new product
Five and three estimates for 2013 and 2014 respectively moved
upward over the last 30 days. However, one downward estimate
revision each for 2013 and 2014 was noticed in the past 30 days.
NCR's growing exposure into ATM and self-service kiosk spaces are
encouraging, given tremendous growth prospects in the respective
markets. Though stiff competition in ATM space, European exposure
and high debt burden are concerns, we are optimistic on the stock
given continuous products launches and synergies from
Other Stocks to Consider
Other stocks in the technology industry that are currently
performing well and have a good visibility include
Concurrent Computer Corp.
Advent Software Inc.
), all with a Zacks Rank #2 (Buy).