Please ensure Javascript is enabled for purposes of website accessibility

Why Diebold Nixdorf Shares Are Jumping Today

By Chris Neiger – Jul 30, 2020 at 3:37PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's second-quarter earnings blew past Wall Street's estimates.

What happened

Shares of Diebold Nixdorf (DBD -10.14%) were rising today as investors reacted to the company beating analysts' consensus estimates for both earnings and revenue in the second quarter. Diebold's stock was up by as much as 12.4% during the day. 

As of 4:08 p.m. EDT, the company's share price had gained 9.5%.

So what 

Diebold Nixdorf reported non-GAAP (adjusted) earnings of $0.38 in the second quarter, which crushed Wall Street's estimate of $0.01 per share. Additionally, the company's revenue of $890.5 million easily outpaced analysts' consensus estimate of $830.3 million for the quarter. 

The company's non-GAAP earnings of $0.38 was also a huge improvement from the $0.06 earnings in the year-ago quarter, though sales were down 22.6%.

A red and green line graph on a dark background.

Image source: Getty Images.

Diebold Nixdorf's CEO, Gerrard Schmid, said in a statement that the company's "second quarter financial results demonstrate the resiliency of our business during the COVID-19 pandemic," adding, "as the second quarter progressed, business activity picked up and the conversion rate to profitability was strong."

But Diebold's share price has suffered tremendously this year. While some companies have seen their share price bounce back after a huge dip in March, Diebold's stock hasn't recovered. The company's share price is down 29% since the beginning of this year. 

Now what 

Like many other companies right now, Diebold Nixdorf didn't provide any guidance for the current quarter. But Schmid did say that "while overall macroeconomic conditions remain uncertain, our execution and improving visibility enables the company to reiterate its 2020 outlook for revenue and adjusted EBITDA. Additionally, our outlook for net cash provided by operating activities and free cash flow has improved." 

Management guided for full-year 2020 revenue of $3.8 billion, adjusted EBITDA of $420 million, and free cash flow of $25 million, all at the midpoint of guidance.

Chris Neiger 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Diebold Nixdorf, Incorporated Stock Quote
Diebold Nixdorf, Incorporated
DBD
$2.57 (-10.14%) $0.29

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
342%
 
S&P 500 Returns
107%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.