NCR says 3Q earnings, revenue below estimates; lowers 2014 revenue outlook; shares tumble

MarketsAssociated Press

NCR Corp. on Monday reported preliminary third-quarter earnings and revenue that fell short of Wall Street expectations, as sales declined and its profits were hurt by unfavorable foreign currency exchange rates. The maker of ATMs and self-service checkout machines also lowered its full-year revenue outlook, citing a challenging retail market and difficult global economic conditions.

Shares in the Duluth, Georgia, company slid 22 percent in afternoon trading.

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NCR said its earnings adjusted to exclude one-time items were 67 cents per share for the quarter ended Sept. 30. That's below the 70 cents per share that financial analysts expected, on average, according to FactSet.

Revenue rose 9 percent to $1.65 billion, just shy of the $1.66 billion analysts anticipated.

Chairman and CEO Bill Nuti noted that retail industry conditions worsened in the third quarter, resulting in weak sales at established stores. The executive also highlighted other negative factors in the quarter, including more cautious retail spending by customers, ongoing data security concerns and consolidation in the retail industry.

That contributed to NCR scaling back its earnings and revenue outlook for 2014.

The company now expects full-year revenue will be between $6.58 billion and $6.63 billion, partly due to lowered expectations for software-related sales. NCR previously projected 2014 revenue between $6.75 billion and $6.85 billion. Wall Street analysts were expecting revenue of $6.73 billion.

NCR predicts that full-year adjusted earnings per share will be between $3 and $3.10. That's still ahead of the $2.96 earnings per share anticipated by financial analysts.

NCR plans to report its full third-quarter earnings Oct. 28 after the markets close.

Shares in NCR fell $6.46 to $23.41 in afternoon trading. The stock is down 31 percent this year.