NCR shares surge on raised estimates

NCR shares surge on raised estimates

Shares in NCR Corporation have surged after the vendor reported that second-quarter results will be better than expected thanks to higher revenue generation at its cash machine and Teradata data warehousing businesses and greater operational efficiencies.

The vendor now expects Q2 revenue of between $1.44 bn to $1.45 bn, an increase of six per cent from the second quarter of 2003, and earnings in excess of $0.35 per share - nearly double the $0.18 Thomson First Call consensus estimate.

Both NCR's Teradata and Financial Self Service units generated second-quarter year-over-year revenue growth well ahead of expectations. NCR's Q2 revenue growth included three percentage points from foreign currency fluctuations.

The vendor's second-quarter earnings will include a benefit of about $85m from resolving a tax matter and the receipt of a $2m break-up fee related to a proposed acquisition. Including the one-time items, earnings are expected to be more than $1.25 per share.

NCR shares were up $4.89, or 10.40% to $51.91 in early trading in the US, the highest level since December 2000.

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