NCR Atleos (NATL) is expected to flag the Indian tariff-related "wildcard" in Q3 results. alongside "modest progress" on reducing its debt, Wedbush Securities said Monday in a report.
Much of NCR's manufacturing is based in India, and costs from the hefty 50% tariffs imposed on US imports from the South Asian nation will "eventually normalize, particularly as recent developments and negotiations between the US and India seem to have somewhat improved," Wedbush said.
The company's leverage ratio is expected to decline to around 3.0 from 3.1 in Q2 with management continuing to target a year-end ratio of 2.8, Wedbush said.
With results set for Wednesday, investors will focus on free cash flow trends, network segment performance, and the company's $200 million share buyback, Wedbush said.
Management is likely to reaffirm its 2025 guidance, projecting 3% to 6% core revenue growth and 21% to 27% growth in earnings per share, the report said.
Wedbush maintained its outperform rating on NCR stock and its price target of $45.
NCR shares fell 1.2% in recent Monday trading.
Price: 36.47, Change: -0.43, Percent Change: -1.17
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