Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

NCR Corp. (NCR - Analyst Report) recently announced that it has sealed a 5-year service deal with British Telecommunications plc (“BT”), a wholly-owned subsidiary of BT Group plc (BT - Snapshot Report). Financial terms of the deal were not disclosed.

British Telecom’s corporate customers are scattered over 100 countries across the world. The company’s commitment toward customer satisfaction with the help of its secure and scalable connectivity solutions has led to a steady demand for its services. Keeping pace with the growing population and demand for data and voice exchange activities, BT intends to provide an extensive set of solutions and services to ensure customer satisfaction. To achieve this goal, BT chose to rely on NCR’s service capabilities.

Per the deal, NCR will provide support toward BT’s connectivity solutions (Converged LAN Connect and IPT solutions) with its cost-effective delivery and integration services. NCR’s services will allow BT to improve its customer productivity and interaction speed on a global basis, at an economical price.

NCR has years of experience in serving the telecom industry. As per internal sources, NCR maintains account with 8 of the world’s top 10 telecom firms. Association with BT will further solidify its position in the industry and we expect similar deals to chip in following the success of the BT deal.

NCR’s telecom business operates under its Emerging Industries segment. The segment posted a 5.0% revenue decline in second quarter results, mainly due to lower product sales and services revenue generated from the Americas and negative currency impact.

However, impressive growth at its Financial Services segment and cost reduction measures led NCR to report decent second quarter earnings, well ahead of the Zacks Consensus Estimate.

But stiff competition from Diebold Inc. (DBD - Snapshot Report) and Wincor Nixdorf in the ATM market and a high debt burden keeps us concerned.

Currently, NCR has a Zacks #3 Rank, implying a short-term Hold rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%