Diebold Nixdorf (DBD) Reports Third Quarter Loss, Skip Revenue Estimates

Diebold Nixdorf (DBD) came out with quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of $0.28. For comparison, a year earlier earnings per share were $0.34. These numbers have been adjusted for one-off items.

This quarterly report represents an earnings surprise of -139.29%. A quarter ago, it was expected that this maker of ATMs, retail systems and other equipment would post a loss of $0.22 per share when it actually produced earnings of $0.38, delivering a surprise of 272.73%.

Over the last four quarters, the company has surpassed consensus EPS estimates only once.

Diebold Nixdorf, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $810.4 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 3.10%. For comparison, revenues from the previous year amounted to USD 958.2 million. Over the last four quarters, the company has topped consensus revenue estimates only once.

The sustainability of the immediate share price movement based on the recently-released numbers and future earnings expectations will largely depend on management’s commentary on the earnings call.

Diebold Nixdorf shares are down about 76.7% year to date, compared with the S&P 500 Index’s decline of -20.1%.

What’s next for Diebold Nixdorf?

While Diebold Nixdorf has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of the earnings release, the estimate revision trend for Diebold Nixdorf is favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. We can therefore expect that the company’s shares will outperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the next quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is $0.44 on $982.39 million in revenues for the coming quarter and -$0.51 on $3.5 billion in revenues for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 40% of over 250 Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another company in the same industry, Expensify, Inc. (EXFY), has not yet released results for the quarter ending September 2022. Results are expected to be released on November 10.

The company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which would represent a year-over-year change of -86.2%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

Expensify, Inc. revenues are expected to be will amount to USD 45.62 million, which means an increase of 21.8% compared to the same quarter last year.

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