NCR Set to Beat Earnings - Analyst Blog
NCR Corporation ( NCR ) is set to report first quarter 2013 results on April 30. Last quarter it posted a 4.35% negative surprise. Let's see how things are shaping up for this announcement.
Growth Factors This Past Quarter
NCR is one of the largest manufacturers of ATMs, Point-of-sale devices, cash dispensers and also serves various self service kiosks. The fourth-quarter results of the company were up to the mark, as the company projected revenues across segments.
The company is slowly expanding its reach across different geographical region, extended NCR's growing exposures into ATM and self service kiosks with new products at regular interval, given tremendous growth prospects in the respective markets. On the other hand, the company is facing some good competition mostly in the ATM market, and is also generating low business from the European region, and has some high debt burden.
Our proven model does not conclusively show that NCR is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: That is because the Most Accurate estimate stands at $0.40 in line with the Zacks Consensus Estimate is lower at $0.40.
Zacks #2 Rank (Buy): NCR Corporation has a Zacks #2 Rank (Buy). NCR's Zacks Rank #2 (Buy) when combined with an ESP of 0.00% 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
You can also consider other stocks that are going to report this earnings season and have positive Zacks Ranks and Expected Surprise Prediction or ESP ( Zacks Earnings ESP: A Better Method ):
- AOL Inc. ( AOL ), Earnings ESP of 3.03% and Zacks #2 Rank (Buy)
- Facebook Inc. ( FB ), Earnings ESP of 12.50% and Zacks #2 Rank (Buy)
- Paychex Inc. ( PAYX ), Earnings ESP of 2.70% and Zacks #2 Rank (Buy)
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