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Here's Why Diebold Nixdorf Stock Is Soaring Today

By Matthew Frankel, CFP® – Updated Apr 23, 2019 at 10:13PM

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Shareholders of the ATM maker finally got a positive earnings report.

What happened

ATM and banking security company Diebold Nixdorf (DBD -1.08%) reported fourth-quarter earnings this morning, and to say that investors are happy with the results would be a massive understatement. As of 11 a.m. EST, shares had risen by a remarkable 34%.

So what

At first glance, it may seem surprising that Diebold is up, since it posted a $0.08-per-share loss, while analysts had projected the company would break even.

However, its revenue of $1.29 billion handily beat expectations. More importantly, Diebold's 2019 outlook is a bit brighter than investors had expected. The company expects cash flow to break even in 2019, a very nice change from the nearly $163 million outflow in 2018.

Hand inserting a card into ATM.

Image source: Getty Images.

And finally, Diebold's cost-cutting initiatives appear to be going even better than expected. Along with its earnings release, the company increased its three-year cost-cutting target to $400 million from the previous level of $250 million.

Check out the latest Diebold earnings call transcript.

Now what

Diebold shares have taken investors on quite the roller-coaster ride in recent history. The stock was trading for more than $15 at this point last year, but after a few lousy quarters, the share price plunged to as low as $2.41.

DBD Chart

DBD data by YCharts.

So, take the fact that Diebold is up 186% so far in 2019 with a big grain of salt. Sure, investors are happier than they were a few weeks ago, but this company has a long way to go before it can return to its former glory.

Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Diebold Nixdorf, Incorporated Stock Quote
Diebold Nixdorf, Incorporated
DBD
$2.75 (-1.08%) $0.03

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