NCR Corporation (NCR) Tops Q4 EPS by 10c, Offers FY15 Guidance

NCR Corporation (NYSE: NCR) reported Q4 EPS of $0.88, $0.10 better than the analyst estimate of $0.78. Revenue for the quarter came in at $1.77 billion versus the consensus estimate of $1.76 billion.

2015 Outlook

The 2015 revenue guidance is expected to be roughly flat on an as-reported basis, and up 4% to 6% on a constant currency basis. We expect revenue growth to be driven by higher value solutions in Financial Services, Retail Solutions and Hospitality. NPOI is expected to be between $830 million and $870 million, primarily due to continued improvements in the software mix across the businesses and the benefit of the restructuring plan, partially offset by approximately $50 million of unfavorable foreign currency impacts. Non-GAAP diluted EPS is expected to be approximately $2.60 to $2.80, due to higher NPOI offset by approximately $0.20 per share of unfavorable foreign currency impacts and a higher effective income tax rate. We expect free cash flow of $325 million to $375 million, which includes restructuring spending of approximately $70 million to $85 million.

(1) Includes 5% of expected unfavorable foreign currency fluctuations.

(2) For 2014, actuarial mark-to-market pension adjustment included; for 2015, actuarial mark-to-market pension adjustments to be determined in Q4 2015 excluded. The impact of the transfer of the UK London pension plan to an insurer expected to occur in 2015 or early 2016 is excluded from the 2015 guidance. The UK London pension plan was approximately $420 million overfunded as of December 31, 2014.

(3) NCR expects approximately $215 million to $220 million of other expense, net including interest expense in 2015 and that its full-year 2015 effective income tax rate will be approximately 25% compared to 22% in 2014.

(Street sees FY EPS of $2.95 on revenue of $6.84 billion)

For earnings history and earnings-related data on NCR Corporation (NCR) click here.

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