) is set to release the fourth-quarter 2013 results on Feb 6. In
the previous quarter, NCR reported a positive earnings surprise
of 11.76%. Let's see how things are shaping up for this
Factors this Past Quarter
NCR reported mixed third-quarter results, with earnings per
share beating the Zacks Consensus Estimate but revenues missing
the same. The company also maintained its fiscal 2013 guidance,
anticipating more balanced revenue growth across its
NCR's exposure into ATM and self-service kiosk spaces are
encouraging, given tremendous growth prospects in these markets.
Moreover, the company is gaining traction in its software
business leveraging its offerings in the mobile, bill pay and
online banking to various banks and other financial institutions
across the globe. Continuous product launches, growing popularity
of its self-service offerings and synergies from acquisitions are
the positive catalysts.
However, softness in its ATM business in the mature markets,
), European exposure and a high debt burden are concerns.
Our proven model does not conclusively show that NCR is likely
to beat earnings estimates this quarter. This is because a stock
needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for
this to happen. This is not the case here as you will see
ESP for NCR is 0.00%. This is because the Most Accurate estimate
is in line with the Zacks Consensus Estimate of 80 cents.
NCR's Zacks Rank #3 (Hold) when combined with a 0.00% ESP makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Stocks that Warrant a Look
Here are some companies you may want to consider as our model
shows these have the right combination of elements to post an
earnings beat this quarter:
Tesla Motors, Inc.
), with Earnings ESP of +200.0% and a Zacks Rank #1 (Strong
), with Earnings ESP of +20.0% and a Zacks Rank #2 (Buy).
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