After plunging to a yearly low ($2.41) in December end, Diebold Nixdorf (DBD) stock jumped today on reporting upbeat Q4 sales and strong 2019 outlook. However, Diebold reported a loss of 8 cents per share versus the breakeven expected by the analysts. Revenue of $1.29 billion surpassed Wall Street’s view of $1.22 billion. Shares of Diebold surged 39% to $7.25 when the market opened on Wednesday.
The maker of ATMs and provider of banking security systems reported a wider loss on a GAAP basis for the fourth quarter. GAAP loss per share widened to $1.62 from $1.46 in the prior-year quarter.
For 2019, Diebold expects revenue to be in the range of $4.4 billion to $4.5 billion and free cash flow to be breakeven. Diebold stated that DN Now initiatives and stable market demand drive improved financial outlook for 2019.
Related: Diebold Nixdorf Q3 2018 earnings conference call transcript
“The company delivered solid fourth quarter results, as we’ve built momentum globally in executing our DN Now transformation plans. Revenue growth was underpinned by strength in Americas Banking and Retail,” said CEO Gerrard Schmid.
The North Canton, Ohio-based company lifted its three-year savings target from $250 million to $400 million due to the plans that include significant cost reduction and improved net working capital,
In early January, Diebold Nixdorf appointed three key executives. Jeffrey Rutherford, who joined the company as interim CFO in October 2018, has been permanently appointed as the CFO. Diebold also named Julian Sparkes as Chief Digital Officer and Hermann Wimmer as SVP of Global Retail.
Diebold stock had almost doubled in the past 90 days and skyrocketed 185% since the beginning of 2019.
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