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Sep 30, 2020
NCR Q3 2020 Earnings Report
NCR's third quarter performance reflected solid execution of its strategy and the resiliency of its solutions in a difficult operating environment.
Key Takeaways
NCR Corporation reported a decrease in revenue by 11% to $1.59 billion, but recurring revenue increased by 5%. GAAP diluted EPS was $0.19, and non-GAAP diluted EPS was $0.54. The company is executing its strategy to shift the mix to more software, services, and recurring revenue, and has reduced leverage and simplified its capital structure.
Revenue decreased 11%; Recurring revenue up 5%
GAAP diluted EPS of $0.19; Non-GAAP diluted EPS of $0.54
Generated healthy recurring revenue growth and implemented productivity improvement initiatives to drive accelerated margin expansion.
Delivered strong free cash flow and have recently taken steps to reduce leverage and simplify capital structure.
Revenue by Segment
Forward Guidance
NCR expects the COVID-19 pandemic to negatively impact its business for the remainder of 2020 and into 2021. All segment results are expected to be negatively impacted, with hardware revenues being most affected and recurring revenue streams expected to be more resilient. The long-term impact of COVID-19 is being evaluated, which may result in charges in the fourth quarter of 2020.
Challenges Ahead
- Expects all segments to be negatively impacted by the COVID-19 pandemic.
- Expects hardware revenues to be most impacted.
- The ultimate impact on our overall financial condition and operating results will depend on the currently unknowable duration and severity of the pandemic
- Evaluating the long-term impact that COVID-19 may have on our business model which may result in charges in the fourth quarter of 2020.
- There can be no assurance that the measures we have taken or will take will completely offset the negative impact of COVID-19.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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