Insights

Why NCR Corporation Stock Crashed Today

What happened
Shares of NCR Corporation (NYSE: NCR) crashed hard on Wednesday. The provider of ATM kiosks, digital banking services, point-of-sale systems, and restaurant management tools published its first-quarter results on Tuesday evening. Investors were not impressed by this report.

Image source: Getty Images.

So what
NCR’s first-quarter sales rose 21% year over year, landing at $1.86 billion. Unfortunately, your average analyst expected a stronger surge with top-line revenue near $1.93 billion. On the bottom line, adjusted earnings fell 35% to $0.33 per diluted share. Here, the Street consensus had pointed to $0.63 per share.
Furthermore, NCR’s disappointing results are sticking around for a while. Management lowered the midpoint of its full-year earnings guidance from $3.40 to $2.95 per share.
Now what
CEO Michael Hayford said that demand for NCR’s products and services was strong, but not robust enough to overcome several headwinds from the global economy. The company faced direct challenges from the omicron variant, a global wave of extreme inflation readings, and the war in Ukraine.
That being said, NCR stands at a crossroads. The company is coming back from a long stretch of stalled revenue growth and inconsistent free cash flows, and this business update took the wind out of the sails that were starting to fill up at the end of 2021. The board and management are in the midst of a strategic review, which could change the 138-year-old company’s business and investor value dramatically.
So NCR’s future looks unpredictable today, but the uncertainty is also fully baked into the stock. NCR shares are trading at just 9.8 times the adjusted full-year earnings projections and six times trailing cash flows today. Value investors should see a lot to like in NCR at these low prices.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Shares of NCR Corporation (NYSE: NCR) crashed hard on Wednesday. The provider of ATM kiosks, digital banking services, point-of-sale systems, and restaurant management tools published its first-quarter results on Tuesday evening. Investors were not impressed by this report.

Image source: Getty Images.

So what

NCR’s first-quarter sales rose 21% year over year, landing at $1.86 billion. Unfortunately, your average analyst expected a stronger surge with top-line revenue near $1.93 billion. On the bottom line, adjusted earnings fell 35% to $0.33 per diluted share. Here, the Street consensus had pointed to $0.63 per share.

Furthermore, NCR’s disappointing results are sticking around for a while. Management lowered the midpoint of its full-year earnings guidance from $3.40 to $2.95 per share.

Now what

CEO Michael Hayford said that demand for NCR’s products and services was strong, but not robust enough to overcome several headwinds from the global economy. The company faced direct challenges from the omicron variant, a global wave of extreme inflation readings, and the war in Ukraine.

That being said, NCR stands at a crossroads. The company is coming back from a long stretch of stalled revenue growth and inconsistent free cash flows, and this business update took the wind out of the sails that were starting to fill up at the end of 2021. The board and management are in the midst of a strategic review, which could change the 138-year-old company’s business and investor value dramatically.

So NCR’s future looks unpredictable today, but the uncertainty is also fully baked into the stock. NCR shares are trading at just 9.8 times the adjusted full-year earnings projections and six times trailing cash flows today. Value investors should see a lot to like in NCR at these low prices.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!