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NCR Atleos Q2 revenue flat, expects Brink's merger to close Q1 2027

NCR Atleos Q2 revenue flat, expects Brink's merger to close Q1 2027 


Overview

  • US self-service banking tech firm's Q2 revenue flat yr/yr

  • Q2 adjusted EPS and adjusted EBITDA both rose sharply yr/yr

  • Company expects Brink's merger to close early Q1 2027 after shareholder approvals


Outlook

  • Company will not provide financial outlook due to pending transaction with Brink’s


Result Drivers

  • SOFTWARE AND SERVICES - Increased software and services revenue offset lower hardware sales and installation services, per company statement

  • PRODUCTIVITY INITIATIVES AND TARIFF REFUNDS - Profit margins improved due to productivity programs and net tariff refunds, per company statement

  • SETTLEMENT PROCESSING AND VAULT CASH COSTS - Network segment profitability boosted by positive settlement processing and lower vault cash costs, per company statement


Company press release: ID:nBwbJK8C1a


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$1.10 bln

$1.13 bln (2 Analysts)

Q2 Adjusted EPS

Beat

$1.49

$0.98 (2 Analysts)

Q2 EPS

$0.86

Q2 Net Income

$65 mln

Q2 Adjusted EBITDA

Beat

$254 mln

$217.57 mln (2 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for NCR Atleos Corporation is $50.20, about 6.8% above its August 4 closing price of $47.00

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Aug 4 - Payments firm FIS shares slide after outlook cut

  • Aug 4 - Evertec beats Q2 profit estimates; raises outlook, buyback plan

  • Aug 4 - Broadridge quarterly profit climbs on investor communications strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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