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| Press Release

Free Research Report as NCR’s Q4 FY17 EPS Surpassed Analysts’ Expectations

Stock Monitor: Issuer Direct Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 14, 2018 / Active-Investors.com has just released a free earnings report on NCR Corp. (NYSE: NCR) ("NCR"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NCR. NCR reported financial results on February 08, 2018, for the fourth quarter and full year ended December 31, 2017. The Company's fourth quarter results were consistent with its guidance and reflected continued momentum in strategic areas such as cloud and Services margin expansion. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, NCR most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=NCR

Earnings Highlights and Summary

NCR's total revenues for the fourth quarter of 2017 (Q4 FY17) reached $1.78 billion, a decline of 1.11% from $1.8 billion in Q4 FY16. Foreign currency fluctuations had a favorable impact on the revenue comparison of 2%. The reported revenue number was higher than the analysts' consensus estimates of $1.74 billion.

During Q4 FY17, NCR's gross profit was $515 million compared to $479 million in Q4 FY16, reflecting an increase of 7.52%. The Company's gross margin increased 2.3% to 28.9% in the quarter under review from 26.6% in the year ago same quarter.

NCR's selling, general, and administrative (SG&A) expenses advanced 3.23% to $256 million y-o-y and research and development (R&D) expenses decreased 6.02% to $78 million y-o-y in Q4 FY16. The Company's income from operations jumped 23.97% to $181 million in the reported quarter from $146 million in the previous year's corresponding quarter.

NCR reported a net loss of $45 million attributable to common stockholders in Q4 FY17 compared to net income attributable to NCR of $57 million in Q4 FY16. The Company's diluted net loss per share attributable to NCR's common stockholders from continuing operations was $0.38 in the quarter under review compared to diluted net income per share of $0.43 in the previous year's same quarter. The reported quarter results for Q4 FY17 included transformation/restructuring costs, acquisition-related amortization of intangibles, pension mark-to-market adjustments, and impact of US tax reform. NCR's diluted EPS, after adjusting for non-recurring items, was $0.92 in Q4 FY17, a decrease of 14.02% from $1.07 in Q4 FY16. The Company's adjusted EPS was higher than analysts' consensus estimates of $0.86 per share.

For the year ending December 31, 2017, NCR's total revenues were $6.52 billion, a decrease of 0.41% from $6.54 billion in FY16. The Company's net income attributable to NCR fell 14.07% to $232 million in FY17 from $270 million in FY16. NCR's diluted earnings per share attributable to common stockholders from continuing operations were $1.01 in the reported year, a decrease of 43.89% from $1.80 in the previous year. Diluted EPS for full year 2017, excluding special items was $3.20, up 5.96% from $3.02 in FY16.

NCR Corp.'s Segment Details

During Q4 2017, the Software segment's net revenues were $508 million, almost 1.2% up y-o-y primarily due to cloud revenue growth of 6% and professional services revenue growth of 3%. This segment had an operating profit of $166 million in Q4 FY17 compared to $172 million in Q4 FY16, reflecting a decrease of 3.49%.

For Q4 FY17, the Services segment's net revenues advanced 3.51% to $619 million on a y-o-y basis. The revenue growth was driven by hardware maintenance and implementation services growth as a result of continued momentum in channel transformation trends. In this quarter, the segment's operating income increased 27.42% to $79 million from $62 million in Q4 FY16.

During Q4 FY17, the Hardware segment's net revenues fell 6.70% to $655 million on a y-o-y basis, due to lower revenues from ATM and SCO segments. The segment generated an operating loss of $2 million in Q4 FY17 compared to operating profit of $30 million in Q4 FY16.

Cash Matters

NCR had cash and cash equivalents of $537 million as on December 31, 2017, up 7.83% from $498 million as on December 31, 2016.

During the quarter ending December 31, 2017, the Company's net cash flow from operating activities was $484 million, 7.81% lower than $525 million for the same period last year. Free cash flow was $402 million in Q4 FY17 compared to $449 million in Q4 FY16.

NCR's long-term debt as on December 31, 2017, was $2.94 billion, a decrease of 2.07% from $3 billion as on December 31, 2016. The Company borrowed $605 million and repaid $830 million on revolving credit facilities in the reported quarter. NCR spent $47 million on expenditures for property, plant and equipment in Q4 FY17, compared to $28 million in Q4 FY16.

Outlook

NCR expects revenue growth of up to 3% for fiscal 2018. The Company expects its GAAP diluted earnings per share to be between $2.08 and $2.48, and its non-GAAP diluted earnings per share to be between $3.30 and $3.45 in 2018. In 2018, the Company expects free cash flow is anticipated to be approximately 90% of non-GAAP net income.

NCR intends to repurchase up to $300 million of its common stock in 2018, under its previously authorized share repurchase programs. Of this, the Company has repurchased a total of $125 million of its common stock till date.

For the first quarter of 2018, NCR expects revenue growth to be between 1% and 2%. The Company expects GAAP diluted earnings per share to be between $0.16 and $0.29, and non-GAAP diluted earnings per share to be between $0.41 and $0.47.

Stock Performance Snapshot

March 13, 2018 - At Tuesday's closing bell, NCR's stock slightly declined 0.78%, ending the trading session at $35.42.

Volume traded for the day: 827.80 thousand shares.

Stock performance in the last month – up 15.90%; previous three-month period – up 12.20%; and year-to-date – up 4.21%

After yesterday's close, NCR's market cap was at $4.32 billion.

Price to Earnings (P/E) ratio was at 19.68.

The stock is part of the Technology sector, categorized under the Information Technology Services industry.

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SOURCE: Active-Investors