Hardware

NCR boosts Q4, FY 2021 revenue, earnings

Image provided by iStock.

February 11, 2022

NCR Corp. reported strong revenue and earnings gains for Q4 and FY 2021, according to an earnings release. For the full year, banking, retail and hospitality each showed solid double- digit revenue growth.

• Revenue increased 25% from $1.63 billion in Q4 2020 to $2.03 billion for the quarter ending Dec. 31, 2021 and increased 20% from $3.09 billion to $3.73 billion for the full year.
• Income improved from a $63 million loss to a $123 million gain for the comparative quarters and increased from $221 million to $474 million for the year. The increase was driven by higher operating income, as well as pension mark-to-market benefit.
• Earnings per share on a basic basis rose from a $1.06 loss to a 45-cent gain for the comparative quarters, and on a diluted basis from a $1.06 loss to a 43-cent gain.
• Net income per common share improved from a $1.62 loss to a 45-cent gain on a basic basis for the comparative quarters and from a $1.62 loss to a 43-cent gain on a diluted basis.
• For the full year, EPS on a basic basis improved from a 30-cent loss to a 62-cent gain on a basic basis and from a 30-cent loss to a 58-cent gain on a diluted basis.
• For the full year, net income per common share improved from an 86-cent loss to a 62-cent gain on a basic basis and from an 86-cent loss to a 58-cent gain on a diluted basis.
• Diluted earnings per share (non-GAAP) rose from 59 cents to 76 cents in the comparative quarters, and from 30 cents to 58 cents for the year on a GAAP basis.
• For the quarter, banking revenue increased 40% due to the inclusion of Cardtronics, as well as higher software, services and ATM hardware revenue.
• For the quarter, retail revenue increased 9% due to higher point-of-sale and self-checkout solutions revenue.
• For the quarter, hospitality revenue increased 27% driven primarily by an increase in point-of-sale solutions.

Shares traded at $842 today against a 52-week range of $827-$1,425.

The $2.03 billion in quarterly revenue outpaced analyst consensus of $2.01 billion, while the non-GAAP EPS of 76 cents surpassed analyst expectations of 71 cents, according to Zacks.

"Our fourth quarter results marked a solid finish to a terrific year for NCR," Michael Hayford, chief executive officer, said in the press release. "We simultaneously drove strong growth in recurring revenue, higher profitability and increased cash generation."

For the full year 2022, the company is forecasting revenue of $8 billion to $8.2 billion, up 12% to 15%, and non-GAAP diluted earnings per share of $3.25 to $3.55, up 27% to 39%.