Diebold Increases Sales but Misses Estimates on Earnings

Diebold (NYSE: DBD ) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Diebold beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.

Gross margins contracted, operating margins improved, net margins improved.

Revenue details
Diebold tallied revenue of $743.2 million. The four analysts polled by S&P Capital IQ predicted sales of $729.5 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $662.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.49. The seven earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.41 for Q2 were 28% higher than the prior-year quarter's $0.32 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.0%, 100 basis points worse than the prior-year quarter. Operating margin was 6.3%, 70 basis points better than the prior-year quarter. Net margin was 3.6%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $742.1 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $3.06 billion. The average EPS estimate is $2.59.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 198 rating the stock outperform, and 35 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Diebold a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Diebold is outperform, with an average price target of $43.40.

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