) is set to report first-quarter 2014 results on Apr 29. Last
quarter, the company posted a positive earnings surprise of
3.75%. Let us see how things are shaping up for this
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Growth Factors This Past Quarter
NCR posted mixed fourth-quarter results, with earnings per share
beating the Zacks Consensus Estimate but revenues missing the
same. However, on a year-over-year basis, both the top and bottom
lines increased, primarily due to software revenue growth and an
increase in SaaS revenues. The addition of Retalix to the Retail
Solutions portfolio also positively impacted total revenue for
The company also witnessed margin expansion aided by higher mix
of software business. Moreover, NCR provided an encouraging
guidance, anticipating balanced revenue growth across its
Furthermore, NCR's growing exposure into ATM and self-service
kiosk spaces is encouraging, given tremendous growth prospects in
the respective markets. Continuous product launches, growing
popularity of its self-service offerings and synergies from
acquisitions are catalysts. Continuous deal wins also remain
NCR's strong point.
Moreover, NCR has strengthened its position in the point of sale
(POS) market through the integration of Radiant Systems.
However, softness in the ATM business in mature markets and
), European exposure and high debt burden are concerns.
Our proven model does not conclusively show that NCR will beat
earnings this quarter. That is because a stock needs to have both
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 49 cents. Hence, the difference is 0.00%.
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 momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
ON Semiconductor Corp.
) has an Earnings ESP of +6.67% and holds a Zacks Rank #1(Strong
Level 3 Communications, Inc.
) has an Earnings ESP of +10.71% and holds a Zacks Rank #1.