Diebold Nixdorf, Incorporated Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Diebold Nixdorf, Incorporated (NYSE:DBD) just released its latest second-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.9% to hit US$940m. Diebold Nixdorf also reported a statutory profit of US$1.15, which was an impressive 44% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Diebold Nixdorf

Following last week's earnings report, Diebold Nixdorf's twin analysts are forecasting 2024 revenues to be US$3.78b, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 97% to US$1.48 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.82b and earnings per share (EPS) of US$1.64 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 39% to US$57.50, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 4.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.6% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Diebold Nixdorf to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Diebold Nixdorf's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Diebold Nixdorf. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Diebold Nixdorf (2 are potentially serious!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.