NYSE$VYX

NCR Voyix Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

NCR's second quarter results were announced, revealing a decrease in revenue but growth in recurring revenue and free cash flow.

NCR Corporation reported a 13% decrease in revenue to $1.48 billion, impacted by COVID-19 and a shift to recurring revenue. However, recurring revenue increased by 5%, and free cash flow was $171 million. The company's cash and cash equivalents stood at $1.68 billion.

  • Revenue decreased by 13% as reported, and 12% in constant currency.
  • Recurring revenue increased by 5% as reported, and 7% in constant currency.
  • Free cash flow was $171 million.
  • GAAP diluted EPS was $0.44; Non-GAAP diluted EPS was $0.27.

Headline financials

Total Revenue

$1.48B

Previous: $1.71B-13.2%
EPS (adj)

$0.27

Previous: $0.76-64.5%
Capital Expenditures

-$18M

Previous: -$35M+48.6%
Free Cash Flow

$138M

Previous: $188M-26.6%
Net Income

$64M

Previous: $88M-27.3%
Operating Income

$89M

Previous: $157M-43.3%
Gross Profit

-$9M

Previous: $471M-101.9%
Cash & Equivalents

$1.68B

Previous: $335M+401.8%
Total Assets

$9.95B

Previous: $8.22B+21.0%
Stock-Based Comp

$20M

Previous: $25M-20.0%

Revenue & EPS history

NCR · Revenue · Quarterly

$1.48B

Q2 2020-13.2%vs Q2 2019

Revenue by segment

NCR · $483M total across 1 segment · Q2 2020

  • Retail
    $483M-13.4%

Forward guidance

NCR expects the COVID-19 pandemic to negatively impact its business for the remainder of 2020 and into 2021. The Hospitality and Retail segments are expected to be the most impacted, with hardware revenues also significantly affected, while recurring revenue is expected to be more resilient.

Tailwinds

  • Further advancing strategy.
  • Executing at a high level.
  • Improving working capital.
  • Addressing certain business impacts with spending cuts.
  • Building cash reserve to improve financial liquidity and flexibility.

Headwinds

  • COVID-19 pandemic will negatively impact business for the remainder of 2020 and into 2021.
  • Hospitality and Retail segments expected to be the most impacted.
  • Banking segment will also experience negative impacts.
  • Hardware revenues expected to be most impacted.
  • Difficult to project how deep the pandemic will be and how long it will last.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.7%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.1%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+17.8%

Q4 2021

Best reaction

-28.3%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+15.2%+8.0%-1.6%
Q4 2025-9.4%-11.9%-31.9%
Q3 2025-6.6%-2.0%-13.2%
Q1 2025+16.6%+27.0%+29.7%
Q4 2024-1.8%-7.8%-14.5%
Q3 2024+2.9%+1.6%+1.1%
Q2 2024-12.2%-11.2%+2.2%
Q1 2024-1.2%+3.1%+1.3%
Q4 2023-19.8%-17.1%-11.7%
Q3 2023-3.1%-1.0%-6.5%
Q2 2023+9.2%+10.6%+16.5%
Q1 2023+10.9%+11.0%+20.5%
Q4 2022-0.2%-4.2%-14.8%
Q3 2022+6.1%+9.3%+19.1%
Q2 2022+6.9%+8.1%+3.7%
Q1 2022-28.3%-12.4%-14.9%
Q4 2021+17.8%+13.1%+1.5%
Q3 2021-5.3%-6.8%+1.3%
Q2 2021-9.4%-6.7%-3.7%
Q1 2021+9.5%+9.0%+16.2%
Q4 2020-8.0%-7.3%-2.0%
Q3 2020-7.1%-3.7%+35.2%
Q2 2020+8.3%+4.9%+20.3%
Q1 2020-17.8%-17.4%-17.6%
Q4 2019-2.8%-3.8%-52.2%
Q3 2019+5.5%+7.4%+9.3%
Q2 2019+5.1%+2.3%-2.3%
Q1 2019+11.1%+9.3%+10.8%
Q4 2018-6.5%-4.6%-5.2%
Q3 2018+12.8%+15.5%+14.4%
Q2 2018-9.0%-9.9%-8.0%
Q1 2018-9.3%-10.0%-2.2%
Q4 2017-11.2%-8.6%+3.2%
Q3 2017-11.4%-13.2%-18.2%
Q2 2017-6.5%-4.1%-17.0%
Q1 2017-5.7%-5.3%-9.3%
Q4 2016+4.1%+5.9%+10.8%
Q3 2016+12.0%+12.9%+25.7%
Q2 2016+2.5%+5.4%+8.2%
Q1 2016-5.1%
Q4 2015-3.9%
Q3 2015+0.4%
Q2 2015+1.3%
Q1 2015-0.5%
Q4 2014+1.3%
Q3 2014+4.3%
Q2 2014+0.2%
Q1 2014-7.8%
Q4 2013-5.6%
Q3 2013-10.0%
Q2 2013+1.6%
Q1 2013+8.7%
Q4 2012+4.9%
Q3 2012-0.3%
Q2 2012-5.7%
Q1 2012+0.0%
Q4 2008-0.1%
Q4 2011-0.1%
Q3 2011-2.4%
Q2 2011-3.1%
Q1 2010-2.3%
Q1 2011-0.3%
Q4 2010+0.9%
Q3 2009+3.2%
Q3 2010+3.2%
Q2 2010+1.3%
Q4 2009+1.3%
Q2 2009+1.3%

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