The 10-second takeaway
For the quarter ended March 31 (Q1), Diebold missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Diebold chalked up revenue of $633.5 million. The three analysts polled by S&P Capital IQ predicted a top line of $665.3 million on the same basis. GAAP reported sales were 9.3% lower than the prior-year quarter's $698.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The seven earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. Non-GAAP EPS were -$0.04 for Q1 compared to $0.74 per share for the prior-year quarter. GAAP EPS were -$0.21 for Q1 compared to $0.71 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.5%, 710 basis points worse than the prior-year quarter. Operating margin was -2.6%, much worse than the prior-year quarter. Net margin was -2.1%, 860 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $705.1 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.97 billion. The average EPS estimate is $1.91.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 184 members out of 223 rating the stock outperform, and 39 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Diebold a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Diebold is hold, with an average price target of $28.75.
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