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Will NCR Corp. (NCR) Keep its Earnings Streak Alive in Q3?
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NCR Corp. is set to report third-quarter 2016 results on Oct 25. Last quarter, the company posted a positive earnings surprise of approximately 10.8%. Moreover, it is worth noting that NCR has outperformed the Zacks Consensus Estimate in the four preceding quarters with an average positive surprise of 10.8%.
Let's see how things are shaping up for this announcement.
Factors to Consider
We believe that NCR’s position in the self-service kiosk space is encouraging, given tremendous growth prospects. The company’s regular product launches enable cloud providers to gain access to its IT infrastructure and service support in a highly flexible and cost-effective way. Also, the growing popularity of its self-service offerings, deal wins and synergies from acquisitions should boost results in the to-be-reported quarter.
During the third quarter, the company won various contracts including the contract to run and manage ING-DiBa Germany’s entire ATM network and Qatar International Islamic Bank’s (QIIB) ATM network in Qatar.
Moreover, Coles Supermarkets, one of Australia’s largest supermarket retailers, chose NCR RealPOS XR8 as its future POS terminal to improve customer checkout experiences and operational efficiency. We believe that these deals will aid the company’s third-quarter revenues.
However, softness in the ATM business in mature markets, competition from Diebold Incorporated (DBD - Free Report) and HP Inc., and a high debt burden remain concerns.
Earnings Whispers?
Our proven model does not conclusively show that NCR is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass earnings estimates. However, that is not the case here due to the following factors:
Zacks ESP: NCR’s ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at 81 cents per share.
Zacks Rank: NCR’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Here are a couple of companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Boyd Gaming Corporation (BYD - Free Report) , with an Earnings ESP of +16.67% and a Zacks Rank #2
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Will NCR Corp. (NCR) Keep its Earnings Streak Alive in Q3?
NCR Corp. is set to report third-quarter 2016 results on Oct 25. Last quarter, the company posted a positive earnings surprise of approximately 10.8%. Moreover, it is worth noting that NCR has outperformed the Zacks Consensus Estimate in the four preceding quarters with an average positive surprise of 10.8%.
Let's see how things are shaping up for this announcement.
Factors to Consider
We believe that NCR’s position in the self-service kiosk space is encouraging, given tremendous growth prospects. The company’s regular product launches enable cloud providers to gain access to its IT infrastructure and service support in a highly flexible and cost-effective way. Also, the growing popularity of its self-service offerings, deal wins and synergies from acquisitions should boost results in the to-be-reported quarter.
During the third quarter, the company won various contracts including the contract to run and manage ING-DiBa Germany’s entire ATM network and Qatar International Islamic Bank’s (QIIB) ATM network in Qatar.
Moreover, Coles Supermarkets, one of Australia’s largest supermarket retailers, chose NCR RealPOS XR8 as its future POS terminal to improve customer checkout experiences and operational efficiency. We believe that these deals will aid the company’s third-quarter revenues.
However, softness in the ATM business in mature markets, competition from Diebold Incorporated (DBD - Free Report) and HP Inc., and a high debt burden remain concerns.
Earnings Whispers?
Our proven model does not conclusively show that NCR is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass earnings estimates. However, that is not the case here due to the following factors:
Zacks ESP: NCR’s ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at 81 cents per share.
Zacks Rank: NCR’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
NCR CORP-NEW Price and EPS Surprise
NCR CORP-NEW Price and EPS Surprise | NCR CORP-NEW Quote
Stocks to Consider
Here are a couple of companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Apple Inc. (AAPL - Free Report) , with an Earnings ESP of +1.21% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boyd Gaming Corporation (BYD - Free Report) , with an Earnings ESP of +16.67% and a Zacks Rank #2
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>