Can NCR Beat These Numbers?

NCR (NYSE: NCR  ) is expected to report Q4 earnings on Feb. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict NCR's revenues will increase 0.6% and EPS will grow 7.7%.

The average estimate for revenue is $1.65 billion. On the bottom line, the average EPS estimate is $0.70.

Revenue details
Last quarter, NCR reported revenue of $1.44 billion. GAAP reported sales were 5.5% higher than the prior-year quarter's $1.36 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.64. GAAP EPS of $0.34 for Q3 were 240% higher than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 24.9%, 250 basis points better than the prior-year quarter. Operating margin was 6.5%, 180 basis points better than the prior-year quarter. Net margin was 4.0%, 280 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.74 billion. The average EPS estimate is $2.46.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 269 members out of 295 rating the stock outperform, and 26 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give NCR a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NCR is outperform, with an average price target of $26.60.

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