Zacks: Brokerages Anticipate NCR Co. (NCR) to Post $0.52 Earnings Per Share

Analysts expect NCR Co. (NYSE:NCR) to report $0.52 earnings per share for the current fiscal quarter, according to Zacks. Three analysts have provided estimates for NCR’s earnings. The highest EPS estimate is $0.60 and the lowest is $0.45. NCR reported earnings per share of $0.93 in the same quarter last year, which would suggest a negative year-over-year growth rate of 44.1%. The business is scheduled to report its next earnings report on Thursday, October 18th.

On average, analysts expect that NCR will report full year earnings of $2.61 per share for the current fiscal year, with EPS estimates ranging from $2.55 to $2.65. For the next fiscal year, analysts expect that the company will report earnings of $2.97 per share, with EPS estimates ranging from $2.75 to $3.08. Zacks Investment Research’s earnings per share calculations are an average based on a survey of sell-side research analysts that that provide coverage for NCR.

NCR (NYSE:NCR) last released its earnings results on Thursday, July 26th. The information technology services provider reported $0.65 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.02. NCR had a positive return on equity of 73.82% and a negative net margin of 0.80%. The company had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same quarter last year, the company earned $0.80 earnings per share. NCR’s quarterly revenue was down 3.5% compared to the same quarter last year.

Several research firms have recently issued reports on NCR. TheStreet downgraded NCR from a “b-” rating to a “c-” rating in a research note on Friday, July 27th. JPMorgan Chase & Co. cut their price target on NCR from $38.00 to $35.00 and set an “overweight” rating for the company in a research note on Friday, July 27th. ValuEngine raised NCR from a “strong sell” rating to a “sell” rating in a research note on Wednesday, August 8th. Benchmark reaffirmed a “buy” rating and set a $44.00 price target on shares of NCR in a research note on Wednesday, July 25th. Finally, Zacks Investment Research downgraded NCR from a “hold” rating to a “sell” rating in a research note on Tuesday, July 3rd. Two analysts have rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $38.83.

Several large investors have recently modified their holdings of the company. Royal London Asset Management Ltd. purchased a new stake in shares of NCR during the 2nd quarter worth about $1,454,000. Engaged Capital LLC grew its holdings in shares of NCR by 47.5% during the 2nd quarter. Engaged Capital LLC now owns 355,799 shares of the information technology services provider’s stock worth $10,667,000 after purchasing an additional 114,645 shares during the period. Public Employees Retirement System of Ohio grew its holdings in shares of NCR by 4.8% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 45,393 shares of the information technology services provider’s stock worth $1,361,000 after purchasing an additional 2,059 shares during the period. California Public Employees Retirement System grew its holdings in shares of NCR by 4.6% during the 2nd quarter. California Public Employees Retirement System now owns 470,887 shares of the information technology services provider’s stock worth $14,117,000 after purchasing an additional 20,728 shares during the period. Finally, Lingohr & Partner Asset Management GmbH lifted its position in NCR by 34.3% during the 2nd quarter. Lingohr & Partner Asset Management GmbH now owns 47,016 shares of the information technology services provider’s stock worth $1,410,000 after acquiring an additional 12,000 shares in the last quarter. Institutional investors and hedge funds own 91.29% of the company’s stock.

Shares of NYSE:NCR traded down $0.67 during midday trading on Wednesday, hitting $28.50. 840,535 shares of the stock were exchanged, compared to its average volume of 1,159,885. The company has a market capitalization of $3.44 billion, a PE ratio of 8.91, a price-to-earnings-growth ratio of 2.80 and a beta of 1.81. The company has a quick ratio of 1.01, a current ratio of 1.46 and a debt-to-equity ratio of 7.89. NCR has a twelve month low of $26.00 and a twelve month high of $38.68.

NCR announced that its board has approved a stock repurchase plan on Thursday, July 26th that allows the company to repurchase $200.00 million in shares. This repurchase authorization allows the information technology services provider to reacquire up to 6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

About NCR

NCR Corporation provides omni-channel technology solutions for businesses to connect, interact, and transact with their customers worldwide. The company's Software segment offers industry-based software platforms and applications and application suites for the financial services, retail, hospitality, and small business industries; and cash management software, video banking software, fraud and loss prevention, check and document imaging, remote-deposit capture, and customer-facing mobile and digital banking applications for the financial services industry.

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