NCR raises Q4 earnings forecast
17 January 2006 | 723 views | 0
Source: NCR Corporation
NCR Corporation (NYSE:NCR) today announced that it anticipates fourth-quarter earnings to be $0.67 or more per share. NCR's previous earnings expectation for the fourth quarter of 2005 was $0.52 to $0.57 per share.
NCR expects to report fourth-quarter revenue of approximately $1.71 billion, a decrease of roughly 4 percent from the fourth quarter of 2004. The year-over-year revenue comparison includes the negative impact of 3 percentage points from foreign currency fluctuations. On a constant currency basis, total company revenue decreased approximately 1 percentage point from the fourth quarter of 2004.
Revenue and profitability in the company's Teradata Data Warehousing business was stronger than anticipated. Despite the negative effect of currency fluctuations, Teradata Data Warehousing and Financial Self Service revenues were only slightly lower than the record fourth-quarter revenue each generated in 2004. Customer Services profitability saw a meaningful improvement from the fourth quarter of 2004 as the company's multiyear profit improvement actions continue to yield positive results. Profitability for Financial Self Service and Retail Store Automation was roughly in line with expectations.
Continued execution of the company's multiyear profit improvement plan positions NCR to achieve the 2007 earnings target it provided in December 2004, a year ahead of plan. NCR is now expecting 2006 earnings per share of $1.85 to $1.90, which includes approximately 10 cents of incremental stock-based compensation expense. Excluding the incremental stock-based compensation expense, 2006 earnings per share is expected to be in the $1.95 to $2.00 range.(1) NCR's 2006 earnings expansion should be more prevalent later in the year as NCR makes incremental investments for future growth and expects a softer ATM market earlier in the year.