Diebold Nixdorf, Incorporated Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

Simply Wall St.
10 Nov 2024

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.

Check out our latest analysis for Diebold Nixdorf

NYSE:DBD Earnings and Revenue Growth November 10th 2024

Taking into account the latest results, Diebold Nixdorf's lone analyst currently expect revenues in 2025 to be US$3.84b, approximately in line with the last 12 months. Per-share earnings are expected to leap 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. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

Despite cutting their earnings forecasts,the analyst has lifted their price target 39% to US$57.50, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. From these estimates it looks as though the analyst expects the years of declining revenue to come to an end, given the flat forecast out to 2025. That would be a definite improvement, given that the past five years have seen revenue shrink 3.5% annually. 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. So it's pretty clear that, although revenues are improving, Diebold Nixdorf is still expected to grow slower than the industry.

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. Fortunately, the analyst 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. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Diebold Nixdorf going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Diebold Nixdorf has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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