NCR Corp. (NYSE: NCR) reported Q3 EPS of $0.58, $0.04 better than the analyst estimate of $0.54. Revenue for the quarter came in at $1.55 billion versus the consensus estimate of $1.6 billion.

• Revenue of $1.55 billion, down 7% as reported
• Software revenue up 1% driven by cloud revenue growth of 6%
• GAAP diluted EPS of $0.57; Non-GAAP diluted EPS of $0.58
• Services revenue up 1% and gross margin expansion of 70 basis points
• Announced planned acquisition of JetPay to expand our offerings to include end-to-end payment processing
• Announcing program to achieve at least $100 million cost savings in 2019

“Our third quarter performance was in-line with our expectations and we continue working to build a stronger and more efficient NCR,” said Michael Hayford, President and Chief Executive Officer. “During the quarter, we made notable progress realigning our organization and addressing critical execution areas. We placed strategic emphasis on our supply chain and manufacturing operations, and our success to date positions us to achieve a significant ramp in ATM production during the fourth quarter.”

Mr. Hayford continued, “Our evaluation of our business has uncovered significant cost reduction opportunities in areas targeting spend optimization to improve margins. Moving forward, we will drive operational efficiencies through a targeted plan that we expect will result in at least $100 million cost savings in 2019. At the same time, we are enabling higher quality and faster deployment of solutions across our markets while remaining committed to becoming a leading software and services-led enterprise provider of vertical industry solutions. This is demonstrated through our pending acquisition of JetPay, which will enable NCR to fully integrate NCR Payments with our point of sale and capture this recurring revenue stream. Our leadership team is confident in our strategy and committed to continuing to take the steps necessary to accelerate our long-term growth potential and deliver increasing returns to our stockholders.”

GUIDANCE:

NCR Corp. sees Q1 2018 EPS of $2.55-$2.75, versus the consensus of $2.60.

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