Stock Analysis

Results: Diebold Nixdorf, Incorporated Delivered A Surprise Loss And Now Analysts Have New Forecasts

It's been a mediocre week for Diebold Nixdorf, Incorporated (NYSE:DBD) shareholders, with the stock dropping 12% to US$41.05 in the week since its latest third-quarter results. Things were not great overall, with a surprise (statutory) loss of US$0.60 per share on revenues of US$927m, even though the analyst had been expecting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Diebold Nixdorf

earnings-and-revenue-growth
NYSE:DBD Earnings and Revenue Growth November 10th 2024

Taking into account the latest results, Diebold Nixdorf's solitary analyst currently expect revenues in 2025 to be US$3.84b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 60,756% to US$3.24. Before this earnings report, the analyst had been forecasting revenues of US$3.86b and earnings per share (EPS) of US$4.77 in 2025. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

Althoughthe analyst has 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2025. Historically, Diebold Nixdorf's top line has shrunk approximately 3.5% annually 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 6.9% per year. Although Diebold Nixdorf's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

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The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Diebold Nixdorf (1 is a bit unpleasant) you should be aware of.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About NYSE:DBD

Diebold Nixdorf

Engages in the automating, digitizing, and transforming the way people bank and shop worldwide.

Excellent balance sheet and good value.

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