NCR Dodges The Retail Blues, Thanks To Automated Checkout Terminals (NCR, TDC)

NCR Corp. (NYSE: NCR), formerly known as National Cash Register, is managing to raise earning per share targets.  While there are always companies that do well and while some companies outperform during an economic crunch, this is quite surprising when you consider that most retail operations are noting a pinch on their results as the economy slides. 

The company has set its new 2007 EPS range at $1.35 to $1.40.  This compares to its previous guidance range of $1.20 to $1.25, and fiscal targets according to First Call are only $1.22.  NCR also said it sees Fiscal 2007 revenue growth of approximately 8% instead of its previous guidance of 5% to 6% revenue growth.  What is interesting is that the company noted stronger than previously anticipated profitability in the company’s Customer Services operations and in financial self-service and retail store automation divisions.  Sounds good for the self check-outs and for the technology side of the business, yet maybe an omen for cashier operators that may not exactly have a triple digit I.Q.

This might not seem like a monumental change, but it did just restructure itself and when you consider the slowing retail economy that NCR sells to then this is quite a surprise.  So far Wall Street is rewarding NCR with a 6.6% gain to $22.35. 

NCR’s 52-week trading range is $19.64 to $57.50, although we’d caution that the $57.50 is misleading because of the recently spun-off Teradata (NYSE: TDC).

Jon C. Ogg
January 10, 2008