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Dec 31, 2020
NCR Q4 2020 Earnings Report
Reported a decrease in revenue due to the COVID-19 pandemic and the shift to recurring revenue, but achieved cost savings and increased recurring revenue percentage.
Key Takeaways
NCR Corporation reported a decrease in fourth-quarter revenue and operating income due to the impact of the COVID-19 pandemic and a shift to recurring revenue. However, the company achieved cost savings of $150 million and increased recurring revenue to 54% of total revenue. The company is proposing a transaction with Cardtronics.
Fourth quarter revenue was down 14% year over year.
Recurring revenue increased 6% and represents 54% of total revenue.
Cost actions are expected to achieve $150 million in savings in 2021.
Announced a proposed transaction with Cardtronics to accelerate NCR-as-a-Service strategy.
Revenue by Segment
Forward Guidance
The company expects the COVID-19 pandemic to continue negatively impacting its business into 2021, with hardware revenues expected to be most impacted and recurring revenue streams expected to be more resilient.
Challenges Ahead
- COVID-19 is expected to negatively impact the business into 2021.
- Hardware revenues are expected to be most impacted by COVID-19.
- The ultimate impact on the company's financial condition and operating results will depend on the duration and severity of the pandemic.
- There can be no assurance that the measures taken will completely offset the negative impact of COVID-19.
- All segments results are expected to be negatively impacted by the COVID-19 pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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