The 10-second takeaway
For the quarter ended March 31 (Q1), Diebold beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins expanded across the board.
Diebold tallied revenue of $698.5 million. The five analysts polled by S&P Capital IQ anticipated a top line of $646.3 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $614.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.74. The eight earnings estimates compiled by S&P Capital IQ predicted $0.34 per share on the same basis. GAAP EPS of $0.71 for Q1 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.7%, 240 basis points better than the prior-year quarter. Operating margin was 7.8%, 350 basis points better than the prior-year quarter. Net margin was 6.5%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $708.9 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $2.97 billion. The average EPS estimate is $2.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 155 members out of 191 rating the stock outperform, and 36 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Diebold a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Diebold is outperform, with an average price target of $41.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.