Shares of NCR Corp. ( NCR ) reached a new
52-week high of $30.05 on Friday, May 3, 2013 following solid first
quarter 2013 results announced on Apr 30.
The closing price of the technology services provider on May 3 was
$29.84, representing a robust one-year return of about 28.0% and a
decent year-to-date return of about 13.9%. Average volume of shares
traded over the last three months stands at approximately
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 $4.9 billion and a long-term expected
earnings growth rate of 14.8%.
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
Six and three estimates for 2013 and 2014, respectively, moved
upward over the last 7 days. There were no downward estimate
revisions for 2013. However, one estimate moved downward for 2014
in the past 7 days.
NCR's growing exposures into ATM and self service kiosks 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
acquisitions.MENTOR GRAPHICS (MENT): Free Stock Analysis
ReportMICRON TECH (MU): Free Stock Analysis ReportNCR CORP-NEW (NCR): Free Stock Analysis ReportSYMANTEC CORP (SYMC): Free Stock Analysis
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Other Stocks to Consider
Other stocks in the technology industry that are currently
performing well and have a good visibility include Symantec
Corp. ( SYMC ), Mentor
Graphics ( MENT ) and
Micron Technology Inc. ( MU ), having a Zacks
Rank #2 (Buy).