NCR Corporation (NYSE:NCR) Q2 2023 Earnings Call Transcript - Page 4 of 5 - InvestingChannel

NCR Corporation (NYSE:NCR) Q2 2023 Earnings Call Transcript

By the time you get to 2026 actually a really nice growth rates it’s in the mid-single-digits and moving toward the high single-digits as you exit ’25 and go into ’26. So, but that will be entirely dependent on how quickly the ATM as a service business takes off. And we’ll communicate and take that very clearly, to a certain extend the short run, we’ll have more revenue growth early if we don’t move toward ATM as a service as quickly as we think.

Erik Woodring: Awesome. That was really helpful color. Thank you. Thank you for that. And then maybe Michael. I know you keep kind of a acknowledging NCR would consider alternative scenarios beyond the current spin if they emerge. But can you maybe share if you’ve had any of those conversations or separately at what point? Is it too close to the proposed spin? Where you kind of have to shut the door on any alternative options and that’s it from me? Thanks so much.

Mike Hayford: Yes, I mean, I’ll just start with. And I share that it’s a little bit of a rhetorical statement to say that a public company or a public company, CEO, or public company Board is open to ideas that would create more shareholder value. So, I’ll start with that we make it explicit, as we’ve gone through a process over the last 18 months. Having said that, we embarked on the spin almost a year ago, at the end of September. We felt that that was a path that, we could execute on that we could control. And most importantly, we felt that this is a path that will create more shareholder value, by separating the two companies. And so, that’s the path we expect to execute. Having said that, if people come knocking on the door, and people come knock all the time, not only the last 12 months.

But literally if you’re a public company, people are always talking to you about optionality. I think right now, the whole group here is heads down on a spin. And I anticipate we’ll get to that spin, as we’ve talked about in the fourth quarter. And so that’s we’re planning to execute on.

Erik Woodring: Awesome. Thanks so much for the color guys. Congrats again.

Mike Hayford: Thank you.

Operator: And we have a question from Ian Zaffino with Oppenheimer.

Isaac Sellhausen: Hi, good afternoon. This is Isaac Sellhausen on for Ian. I just had one question on the cost side. I know you mentioned in prepared remarks. But I guess what are you seeing as far as component labor and rate inflation? Sounds like things are trending in the right direction. But just curious, what is guidance assume, did assume that continued normalization or for inflation to sort of stay in the same range? Thank you.

Tim Oliver: Yes, I think the guidance for the full year always presumed that we would lap those difficult environments as we started this year. We’ve seen the savings in premium freight and premium labor procedure lack of linear manufacturing and the need to ship product much more quickly. Last year, we’ve lacked that now, the component shortages that we experienced, have been solved not just, because there’s more availability, but because we wanted to be qualified a bunch of new vendors, and new designs to make sure that we were insulated or some are more insulated from that dynamic going forward. So good old fashioned hard work, from a productivity perspective, better work from our supply chain group. And the elimination of some of the premium freight is all coming through as we expected, it will continue in the second half of the years, as I said earlier, we’ll expand margin in the second half of the year, about two points.

And we were able to get it to almost two and a half points of margin expansion in the first half of the year. So it’s very similar improvement it continues on through and the cost saving actions that we’re – taken in Q4 of last year, and in Q1 of this year, are also showing nice returns.

Isaac Sellhausen: Okay. Great. Thank you very much.

Operator: Thank you. And that does conclude the question-and-answer session. I’ll now turn the conference back over to Mike Hayford.

Mike Hayford: Thanks. Thanks, everybody, for joining us today on NCR second quarter earnings call. As you can all see, the NCR team delivered on an outstanding quarter literally across the board. And we exceeded all the expectations that we came into the quarter to deliver. I would say given the potential for the distraction across our entire company during this time of driving towards the spin. I’m especially proud of the way the team kept the focus, it kept the focus on the customers, kept the focus on execution, kept the focus on delivering really tremendous numbers for the quarter. So, I want to thank everybody on the NCR team for making that happen. As we close to the spin and I reflected on the last five years of NCR. Our team is very proud of the fact that we have been able to transform NCR into a softer lane as a services company.

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire