Diebold Reports Q2 Results; Security Division Posts 6.9% Growth
Diebold posted quarterly revenue of $733.4 million, surpassing analyst forecasts.
NORTH CANTON, Ohio – Diebold (NYSE: DBD) on Thursday (July 30) reported second-quarter profit of $22.2 million. On a per-share basis, the company said it had net income of 34 cents. Earnings, adjusted for restructuring costs and non-recurring costs, were 44 cents per share.
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The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 40 cents per share.
The maker of bank teller machines, security systems and other equipment posted revenue of $733.4 million in the period, also surpassing Street forecasts. Three analysts surveyed by Zacks expected $711.2 million.
Financial self-service revenue grew 4.6%, or 13.1% in constant currency (an exchange rate that eliminates the effects of exchange rate fluctuations and used when calculating financial performance numbers). Security revenue grew 6.9%, or 8.2% in constant currency. Revenue growth in Diebold’s core businesses offset a decline in the Brazil business.
Total revenue growth in constant currency was driven by increased volume in North America, Latin America, and the Europe, Middle East and Africa (EMEA) regions. The currency impact was mainly driven by a weakening of the Brazil real and the euro.
“We’re encouraged with the progress we’ve made since we introduced our Diebold 2.0 transformation in 2013, with a strong emphasis on reducing our cost structure, improving our cash flow, building talent and making the investments necessary to grow the company,” Diebold President and CEO Andy Mattes said in a statement. “These pillars will remain important during the next phase of our transformation. Looking forward, we will place more emphasis on improving our mix of revenue
to include a higher ratio of recurring services and software, which typically improves visibility and value.”
Diebold expects full-year earnings in the range of $1.70 to $1.90 per share. Its shares have decreased 3% since the beginning of the year. The stock has fallen 12% in the last 12 months.
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