) posted fourth-quarter 2012 earnings per share (EPS) of 72
cents, which surpassed the Zacks Consensus Estimate of 69
NCR reported revenues of $1.64 billion in the fourth quarter,
up 2.6% from $1.60 billion in the year-ago quarter. Total revenue
was positively impacted by the solid year-over-year increase in
Hospitality segment, supported by marginal increases in Retail
Solutions and Financial Services segments. This was partially
offset by double-digit decline in Emerging Industries
Financial services reported revenues of $912.0 million, up
0.4% from $908.0 million in the year-ago quarter. In Financial
Services, the company is continuously gaining market share on a
national level, and the growth of this segment is fueled to a
considerable extent by some previous acquisitions.
Retail solutions revenue was up 2.0% year over year to $490.0
million in the quarter. The company witnessed a good quarter in
retail, with growth in both orders and backlog.
The Hospitality segment's revenue increased a robust 42.9%
from the year-ago quarter to $150.0 million in the reported
quarter. All the segments such as Hardware, Software and SaaS
The Emerging Industries segment reported revenues of $90.0
million, down 16.0% year over year. The decline in revenues was
driven primarily by a decrease in revenues in the Americas and
Gross margin in the quarter was 20.2% versus 24.0% in the
year-ago quarter. The year-over-year downside in gross margin was
fueled by higher product and services cost.
NCR reported a net loss of $22.0 million or 14 cents per
common share in the reported quarter, compared with $12.0 million
or 37 cents per diluted share in the year-ago quarter. Excluding
special items like impairment, pension expense, acquisition
related transaction cost, amortization and legal settlement
charges; non-GAAP income from continuing operations was 72 cents
per share compared with 66 cents per share in the prior-year
Balance Sheet & Cash Flow
Net cash provided by operating activities was $100.0 million
during the fourth quarter of 2012, down from net cash generation
of $274.0 million in the year-ago period. Cash from operating
activities was negatively impacted by additional pension
NCR ended the quarter with $1.07 billion in cash and cash
equivalents versus $581.0 million as of Sep 30, 2012.
NCR expects its full-year 2013 revenue to increase in the
range of 9.0% to 11.0%. Income from operations is expected in the
range of $548.0 to $563.0 million. GAAP EPS is expected in the
range of $2.06 to $2.16, while non-GAAP EPS is expected in the
range of $2.65 to $2.75.
NCR reported modest fourth-quarter results, with revenues
improving across most of its business segments, and EPS
surpassing the Zacks Consensus Estimate. Higher volumes helped
the company, while higher costs led to lower gross margin.
The company provided a decent fiscal 2013 guidance and
believes that it is well positioned to generate good business
volume in fiscal 2013. The company faces strong competition from
Currently, NCR Corp. has a Zacks Rank #3 (Hold). Investors can
also consider other technology stocks such as
), which carries a Zacks Rank #1 (Strong Buy), and
), which has a Zacks rank#2 (Buy rating).
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