NCR Corp.'s revenue rose 3% from $1.5 billion in Q1 2020 to $1.54 billion for the first quarter ending March 31, 2021, according to an earnings release.
Adjusted non-GAAP earnings before interest, taxes, depreciation and amortization rose from $188 million in Q1 2020 to $258 million in Q1 2021.
GAAP diluted earnings per share rose from 13 cents in Q1 2020 to 19 cents in Q1 2021, while non-GAAP diluted EPS rose from 31 cents to 51 cents in the respective quarters.
"Our first quarter results represent a great start to the year with increased momentum in our shift to NCR-as-a-Service," Michael Hayford, president and CEO, told investors on the earnings call. "Our performance included strong recurring revenue growth, margin expansion and cash flow generation. We are confident our strategy will drive accelerated profitable growth and deliver long-term value creation for stockholders. Our financial position is strong, and our proposed transaction with Cardtronics remains on track for a mid-year 2021 close, subject to regulatory and Cardtroncs' shareholder approval."
Banking revenue decreased 1% due to a decline in ATM hardware revenue partially offset by higher software and services revenue.
Retail revenue increased 13% due to growth in self-checkout and point-of-sale revenue, as well as higher services revenue.
Hospitality revenue increased 6% driven primarily by an increase in point-of-sale revenue, as well as higher services revenue.
First quarter net income from continuing operations attributable to NCR of $30 million increased from $23 million in the prior year period. The increase was driven by impacts to gross margin and operating expenses partially offset by higher income tax expense, described above.
The $1.54 billion in revenue surpassed the Zacks Consensus estimate by 0.04%, according to a Zacks report. The company has topped consensus revenue estimates four times over the last four quarters. The 51 cents EPS beat the Zacks Consensus estimate of 47 cents per share.
Shares traded at $45.59 today.
"We continue to navigate through the challenging times presented by COVID-19, with a sharp focus on safeguarding our employees and helping our customers," Hayford said. "Despite the unprecedented environment, our teams are executing at a high level and we are advancing our strategy.
"The COVID-19 pandemic is complex and rapidly evolving. The ultimate impact on our overall financial condition and operating results will depend on the currently unknowable duration and severity of the pandemic, as well as any additional governmental and public actions taken in response. We continue to evaluate the long-term impact that COVID-19 may have on our business model. There can be no assurance that the measures we have taken or will take will completely offset the negative impact of COVID-19."
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