NCR Corporation says it is raising its earnings forecast for 2004, partly due to higher than expected capital spending on financial IT.
NCR now expects to earn $1.10 to $1.15 per share in 2004, up from earlier estimations in the range of 85 cents to 95 cents.
The vendor says the increased guidance is due to indications that overall capital spending for IT may be improving, as well as savings it made by streamlining operations and selling off real estate.
The company recorded a 40% rise in earnings for the quarter ended 31 December 2003, caused by increased sales its Teradata and ATM businesses. NCR says the improved spending environment could lead to revenue increase at the high end of previous guidance for both these divisions, which could in turn result in overall revenue growth of between one and two per cent in 2004.
First-quarter results are also expected to exceed prior guidance. Revenue is expected to be roughly $1.27 billion to $1.29 billion, again led by strong sales of cash machines and data warehousing systems.
Including real estate gains of $0.04 per share, NCR now expects $0.05 to $0.10 loss per share for the seasonally weak first quarter, compared with a current First Call mean estimate of $0.27 loss per share.
NCR releases its first quarter results on 29 April 2004.