What happened

ATM and banking security company Diebold Nixdorf (NYSE:DBD) 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.