NCR Corp. (NCR) recently secured an ATM servicing deal with Agricultural Bank of China. Financial terms of the deal were not disclosed.
As per the deal, NCR will provide hardware and software support services for its 10,000 on-premises branded ATMs. With support from NCR, Agricultural Bank of China will be able to serve its customers better through efficient ATM services.
China happens to be the most significant revenue earner for NCR and this big deal from the Agricultural Bank of China marks another bold footstep in that region. NCR has the largest installed ATM base in China. Hence, we can expect a couple of similar deals from this region, as smooth ATM functioning is a prerequisite for every bank.
We remain highly positive on NCR Corp.’s ATM footprint. The company broadened its ATM suite in February, by adding SelfServ 16 ATM, which will help customers improve the efficiency of cash transactions on premises away from banks.
We are also encouraged by the company’s association with leading banks, such as Barclays Bank plc (BCS) and UniCredit Bank, which have upgraded their ATMs with advanced NCR banking solutions. According to a study published by Retail Banking Research, NCR has been the world's largest supplier of multi-vendor ATM middleware and applications for 24 consecutive years.
NCR posted decent second quarter results based on strong geographic performance with notable strength in the BICMEA (Brazil, India, China, Middle East and Africa) region. We believe that the growing exposure to Brazil, MEA and China will pump up revenues significantly.
We are also encouraged by the fiscal year guidance, and believe that the company is well positioned to deliver solid momentum across all its businesses.
Currently, NCR Corp. has a Zacks #2 Rank, which translates into a short-term Buy rating.
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