NCR ATMaaS Solution to Simplify MAA's Back-Office Operations
NCR Corporation NCR recently announced that its ATM-as-a-Service (ATMaaS) solution has been selected by the Members ATM Alliance (“MAA”). MAA is a credit union service organization that assists credit unions in ATM processing and management. The organization aggregates ATM-managed services for the credit unions in its alliance.
Through the recently entered partnership agreement, NCR’s ATMaaS solution will now be available to MAA’s participating credit unions. The collaboration will help MAA update its legacy ATM fleet and simplify back-office operations.
The transition will help MAA streamline its managed service offerings and shift the operational management of its ATM operations, including monitoring, hardware and software maintenance, cash management and transaction processing, to NCR.
NCR Corporation Price and Consensus
NCR Corporation price-consensus-chart | NCR Corporation Quote
We remain highly positive about NCR's ATM footprint. The company has been one of the world's largest and leading suppliers of multi-vendor ATM hardware and applications for more than 31 consecutive years. We believe that NCR's commitment to protecting the trust and integrity of the ATM channel has been inspiring banks and other financial institutions to choose its services.
In the first quarter of 2023, NCR’s Digital Banking Solution revenues remained flat year over year at $136 million. Revenues from the Self-Service Banking segment improved 4% to $613 million.
Of late, NCR has been focusing more on providing ATM as a service rather than offering hardware. In September 2022, NCR revealed that it is planning to spin off into two new publicly traded standalone companies. One of these will focus on the digital commerce business spearheading the retail, hospitality and digital banking industries. The other will provide solutions related to global ATM as a Service and ATM network businesses.
The separation intends to attract distinct shareholder bases, which are better aligned with each company’s value proposition and financial profile. Both companies will follow different business goals, capital structures and allocation strategies. These will help NCR deliver long-term growth with increased flexibility in separate sets of operations and sustainably create value for stockholders, offering them greater transparency.
Despite supply-chain disruptions and other macroeconomic headwinds, NCR managed to deliver better-than-expected first-quarter 2023 results. The enterprise technology provider reported revenues of $1.89 billion, beating the Zacks Consensus Estimate of $1.84 billion. Its first-quarter non-GAAP earnings rose 6% year over year to 56 cents per share and surpassed the consensus mark of 43 cents.
However, NCR's near-term prospect looks gloomy as organizations are pushing back their investments in big and expensive technology products due to global economic slowdown concerns. The ongoing Russia-Ukraine war is likely to continue disrupting its overall financial performance in the near term.
Moreover, higher-than-expected inflationary pressure has led to a substantial increase in components, freight and fuel expenses, which are anticipated to continue hurting the company’s profitability in the next few quarters. Foreign exchange headwinds remain an added woe.
Zacks Rank & Stocks to Consider
NCR currently carries a Zacks Rank #3 (Hold). Shares of the company have risen 5.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Meta Platforms META, Manhattan Associates MANH and Blackbaud BLKB, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
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The Zacks Consensus Estimate for Manhattan Associates' second-quarter 2023 earnings has been revised upward by a couple of cents to 72 cents per share for the past 60 days. For 2023, earnings estimates have moved upward by 17 cents to $2.87 per share in the past 60 days.
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Blackbaud's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10.4%. Shares of BLKB have rallied 19.3 % YTD.
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