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Why Diebold Nixdorf Shares Popped 29.5% Today

By Travis Hoium - Updated Jul 25, 2019 at 12:11PM

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Earnings surprised investors by a wide margin.

What happened 

Shares of Diebold Nixdorf (DBD -7.41%) jumped as much as 29.5% in early trading Thursday after the company reported second-quarter 2019 results. Shares settled slightly as the day went on, but were still up 23.7% at 11:30 a.m. EDT. 

So what

Revenue rose 4% in the quarter to $1.15 billion, and operating profit was $7.3 million versus a loss of $126.6 million a year ago, which included an $83.1 million impairment charge. Using generally accepted accounting principles (GAAP), the loss per share was $0.66. But on a non-GAAP (adjusted) basis, earnings were $0.06 per share. Analysts were only expecting $1.06 billion in revenue and a $0.14 loss per share. 

Woman using an ATM machine.

ATMs are one of Diebold Nixdorf's specialties. Image source: Getty Images.

Management increased full-year guidance to the top end of its previous range. It now expects $4.5 billion of revenue and $400 million to $420 million of adjusted EBITDA

Now what

Traction in the DN Series of ATMs is powering some of the improvement in financials, and that's what management pointed to as an operating driver. The market had clearly lowered expectations to the point that it was fairly easy for the company to exceed them, and that's the real reason the stock jumped today. If Diebold Nixdorf can continue to exceed guidance for the rest of the year, there's no reason this stock's run can't continue. 

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Stocks Mentioned

Diebold Nixdorf, Incorporated Stock Quote
Diebold Nixdorf, Incorporated
DBD
$2.75 (-7.41%) $0.22

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