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Jun 30, 2020
NCR Q2 2020 Earnings Report
NCR's second quarter results were announced, revealing a decrease in revenue but growth in recurring revenue and free cash flow.
Key Takeaways
NCR Corporation reported a 13% decrease in revenue to $1.48 billion, impacted by COVID-19 and a shift to recurring revenue. However, recurring revenue increased by 5%, and free cash flow was $171 million. The company's cash and cash equivalents stood at $1.68 billion.
Revenue decreased by 13% as reported, and 12% in constant currency.
Recurring revenue increased by 5% as reported, and 7% in constant currency.
Free cash flow was $171 million.
GAAP diluted EPS was $0.44; Non-GAAP diluted EPS was $0.27.
Revenue by Segment
Forward Guidance
NCR expects the COVID-19 pandemic to negatively impact its business for the remainder of 2020 and into 2021. The Hospitality and Retail segments are expected to be the most impacted, with hardware revenues also significantly affected, while recurring revenue is expected to be more resilient.
Positive Outlook
- Further advancing strategy.
- Executing at a high level.
- Improving working capital.
- Addressing certain business impacts with spending cuts.
- Building cash reserve to improve financial liquidity and flexibility.
Challenges Ahead
- COVID-19 pandemic will negatively impact business for the remainder of 2020 and into 2021.
- Hospitality and Retail segments expected to be the most impacted.
- Banking segment will also experience negative impacts.
- Hardware revenues expected to be most impacted.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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