What happened
Shares of Diebold Nixdorf (DBD) were rising today as investors reacted to the company beating analysts' consensus estimates for both earnings and revenue in the second quarter. Diebold's stock was up by as much as 12.4% during the day.
As of 4:08 p.m. EDT, the company's share price had gained 9.5%.
So what
Diebold Nixdorf reported non-GAAP (adjusted) earnings of $0.38 in the second quarter, which crushed Wall Street's estimate of $0.01 per share. Additionally, the company's revenue of $890.5 million easily outpaced analysts' consensus estimate of $830.3 million for the quarter.
The company's non-GAAP earnings of $0.38 was also a huge improvement from the $0.06 earnings in the year-ago quarter, though sales were down 22.6%.
Image source: Getty Images.
Diebold Nixdorf's CEO, Gerrard Schmid, said in a statement that the company's "second quarter financial results demonstrate the resiliency of our business during the COVID-19 pandemic," adding, "as the second quarter progressed, business activity picked up and the conversion rate to profitability was strong."
But Diebold's share price has suffered tremendously this year. While some companies have seen their share price bounce back after a huge dip in March, Diebold's stock hasn't recovered. The company's share price is down 29% since the beginning of this year.
Now what
Like many other companies right now, Diebold Nixdorf didn't provide any guidance for the current quarter. But Schmid did say that "while overall macroeconomic conditions remain uncertain, our execution and improving visibility enables the company to reiterate its 2020 outlook for revenue and adjusted EBITDA. Additionally, our outlook for net cash provided by operating activities and free cash flow has improved."
Management said that full-year 2020 revenue will be $3.8 billion, adjusted EBITDA will be $420 million, and free cash flow will be $25 million, all at the midpoint of guidance.
