NCR Cuts Q3, FY Outlook; Stock Tanks Over 24% - Update

(RTTNews) - Automated teller machine maker NCR Corp (NCR), Monday cut its guidance for the third quarter and for the full year, citing a tough retail market that has led to delayed customer spending as well as the impact of data security breaches.

Following the announcement, NCR shares plunged 22 percent in morning trade on the New York Stock Exchange.

NCR, based in Duluth, Georgia, is a hardware, software and electronics company that provides self-service kiosks, ATMs, check processing systems, barcode scanners, and business consumables.

For the third quarter, NCR now projects third-quarter adjusted earnings of $0.67 a share and revenue of about $1.65 billion, which the company said is below its prior expectations.

Analysts polled by Thomson Reuters currently expect earnings of $0.71 per share on revenue of $1.66 billion for the quarter. Analysts' estimates typically exclude special items.

Market conditions within the retail industry worsened in the third quarter, leading to delayed customer spending, CEO Bill Nuti said.

"Contributing further are ongoing data security concerns, which were heightened in the third quarter. This is causing retailers to shift IT priorities, resources, and capital spending," Nuti said.

The guidance also reflects foreign currency headwinds, the company said.

The company now expects third-quarter non-pension operating income of $204 million, down from its prior guidance of $215 million to $225 million.

For the full year 2014, NCR now expect adjusted earnings of $2.60 to $2.70 a share and revenue of $6.58 billion to $6.63 billion, from a prior guidance of $3.00 to $3.10 a share in earnings and $6.75 billion to $6.85 billion in revenue.

Analysts currently expect earnings of $3.00 a share on revenue of $6.74 billion for the year.

NCR is trading at $23.10, down $6.77 or 22.65%, on a volume of 12.2 million shares.