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Mar 31, 2020
NCR Q1 2020 Earnings Report
NCR reported first quarter results, impacted by COVID-19 and Nashville Global Fulfillment Center outage.
Key Takeaways
NCR Corporation reported a 2% decrease in revenue to $1.50 billion for the first quarter of 2020. The company's GAAP diluted EPS was $0.13, and non-GAAP diluted EPS was $0.31. The business was impacted by COVID-19 and the Nashville Global Fulfillment Center outage, but the company has taken steps to improve liquidity and financial flexibility.
Revenue decreased by 2% as reported and 1% in constant currency.
Recurring revenue increased by 6% as reported and 7% in constant currency.
GAAP diluted EPS was $0.13; Non-GAAP diluted EPS was $0.31.
Cash and cash equivalents totaled $1.2 billion as of March 31, 2020.
Revenue by Segment
Forward Guidance
NCR has withdrawn its full year 2020 outlook due to the uncertainty caused by the COVID-19 pandemic, expecting a negative impact on business for the remainder of 2020. Hospitality and Retail segments are expected to be the most impacted.
Positive Outlook
- Taking steps to improve working capital.
- Addressing certain business impacts with spending cuts.
- Building cash reserve to improve financial liquidity and flexibility.
- Issued $400 million senior unsecured notes.
- Drew the remaining available funds of $630 million on our five-year, $1.1 billion revolving credit facility
Challenges Ahead
- Suspended share repurchase programs.
- Limiting mergers and acquisition activity.
- Reducing salary for members of leadership team and certain salaried employees.
- Reducing planned capital expenditures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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