NATL Earnings Prediction
The chart below shows how NATL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NATL sees a -0.89% change in stock price 10 days leading up to the earnings, and a +8.33% change 10 days following the report. On the earnings day itself, the stock moves by +1.58%. This data can give you a slight idea of what to expect for the next quarter's release.
NATL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.08B
1.03%
-0.28%
Gross Margin
24.30%
-3.26%
3.85%
Operating Margin
11.97%
-7.42%
10.63%
Net Margin
2.13%
139.89%
-17.76%
EPS
0.32
139.02%
-17.95%
No Data Available
NATL Earnings Analysis
NCR Atleos Corporation Corporation (NATL.N) Earnings Conference Call
Positive
Q3 Revenue Performance: 1. Strong Revenue Growth: NCR Atleos reported $1.1 billion in revenue for Q3 2024, marking a 4% year-over-year increase on a constant currency basis, driven by strong performance in recurring software and services revenue.
Adjusted EBITDA Performance: 2. Significant Adjusted EBITDA: The company achieved an adjusted EBITDA of $207 million in Q3 2024, with a margin of 19.2%, reflecting a sequential margin expansion of 380 basis points from Q1 to Q3.
Free Cash Flow Performance: 3. Free Cash Flow Generation: NCR Atleos generated $38 million in free cash flow for Q3 2024, contributing to a year-to-date total of approximately $123 million, demonstrating strong cash flow generation capabilities.
ATM Service Revenue Growth: 4. Growth in ATM as a Service: The ATM as a service revenue grew 23% year-over-year to $49 million in Q3 2024, with a live customer count increase of 46% and expansion into 10 new markets.
Recurring Revenue Performance: 5. Recurring Revenue Stability: Recurring revenue reached $790 million in Q3 2024, comprising 73% of total revenues, with an 8% year-over-year increase in recurring revenue, showcasing the stability and consistency of the business.
Negative
Hardware Revenue Decline: 1. Declining Hardware Revenue: Hardware revenue was deferred due to the shift to ATM as a service, impacting overall revenue growth despite strong service revenue performance.
Labor Cost Impact: 2. Increased Labor Costs: The company faced higher labor costs which contributed to expected separation-related dis-synergies, affecting overall profitability.
Cash Flow Challenges: 3. Negative Cash Flow Impact: The company utilized $50 million in working capital for inventory and accounts payable, which will impact cash flow conversion in the fourth quarter.
ARPU Decline Factors: 4. ARPU Variability: The average revenue per unit (ARPU) declined sequentially, attributed to a higher mix of asset-light deals and lower revenue-generating geographies.
Macroeconomic Challenges Ahead: 5. Ongoing Macro Headwinds: Despite strong performance, the company acknowledged ongoing macroeconomic headwinds that could impact future growth and profitability.
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NATL Earning Call Sentiment
NCR Atleos Corporation (NATL) Q3 2024 Earnings Conference Call Transcript
1.0x
00:00
00:00
NATL.N
0.36%Positive
The earnings call presents a mixed but overall positive outlook. Financial performance shows growth with a 4% revenue increase, strong recurring revenue, and improved EBITDA margins. Raised EPS guidance and debt refinancing indicate financial health. The Q&A suggests ongoing growth in key areas like ATM services and EBITDA margins. Although there are challenges like supply chain issues and economic headwinds, the focus on debt reduction and future shareholder returns is promising. The market is likely to react positively, with a potential stock price increase in the 2% to 8% range.