Hardware

NCR lifts Q3 2021 revenue, income slides

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November 3, 2021

NCR Corp. reported a 20% jump in revenue for Q3, 2021, while income declined, according to an earnings release.

Net revenue rose from $1.59 billion to $1.9 billion from Q3 2020 to the quarter ending Sept. 30, 2021.

Third quarter net income from continuing operations fell from $31 million to $12 million in the comparative quarters, driven by the extinguishment costs incurred related to the redemption of $400 million, 8.125% senior notes due 2025 and higher income tax expense.

Diluted earnings per share (GAAP) fell from 19 cents to 6 cents in the comparative quarters, while non-GAAP EPS rose from 54 cents to 69 cents.

"We delivered solid results in the third quarter with strong growth in recurring revenue streams, higher profitability and consistent cash generation," CEO Michael Hayford said in the press release. "More importantly, we made significant progress in the strategic initiatives that are transforming NCR into a software platform and payments company. Strong demand, diligent execution and strategic traction should allow us to close out a successful 2021 and provide momentum for 2022. The integration of Cardtronics is well underway and we remain enthusiastic about the growth opportunities that the combination will yield."

Banking revenue increased 35% due to higher software and services revenue, which includes the results of Cardtronics, partially offset by a decline in ATM hardware revenue.

Retail revenue decreased 1% due to lower self-checkout hardware revenue partially offset by higher point-of-sale solutions revenue. The company is also seeing an impact on the year-over-year comparison due to the shift from selling perpetual software licenses to recurring revenue.

Hospitality revenue increased 29% driven primarily by an increase in point-of-sale solutions revenue across both our enterprise and small-and-medium business customers.

Shares traded today at $827 against a 52-week range of $696.29-$1,432.