Benzinga | Oct 26, 2020 10:19AM EDT

NCR's Earnings Outlook

On Tuesday, October 27, NCR (NYSE: NCR) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering NCR modeled for quarterly EPS of $0.39 on revenue of $1.55 billion. In the same quarter last year, NCR reported earnings per share of $0.73 on revenue of $1.78 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 46.58% decrease for the company. Sales would be down 13.07% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.21 0.32 0.84 0.68EPS Actual 0.27 0.31 0.85 0.73Revenue Estimate 1.43 B 1.51 B 1.75 B 1.62 BRevenue Actual 1.48 B 1.50 B 1.89 B 1.78 B

Stock Performance

Over the past 52-week period, shares of NCR have declined 26.61%.

Do not be surprised to see the stock move on comments made during its conference call. NCR is scheduled to hold the call at 16:30:00 ET and can be accessed here.