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NCR's stock price up 60% in '04

December 5, 2004

MSNBC: NCR Corporation's stock price has shot up about one-third in the past three months, and Dec. 1, NCR announced it was going to split its stock in half in January.

NCR's stock price is up 60 percent this year and continues to set not just 52-week highs, but all-time highs. With recent trading ranges around $60, it's getting harder to remember when the stock stood at less than $18 in early 2003.

"I think the market is starting to realize there's a lot of earnings potential that the company has yet to unlock," said Matt Summerville, an analyst with KeyBanc Capital Markets in Cleveland.

Analysts said Mark Hurd, who became chief executive officer in early 2003, has become popular with investors after delivering seven straight quarters of estimates-beating numbers.

Hurd has boosted profits through employee layoffs, selling buildings and several other initiatives that have shed tens of millions of dollars in costs from the company. In recent quarters, he has been able to manage sales growth after years of flat or falling revenue.

In the third quarter, the company tripled its profit, beating estimates of 40 cents per share by 6 cents. The company also said revenue increased 7 percent, which showed that sales are improving.

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