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What Awaits Diebold Nixdorf (DBD) This Earnings Season?

Zacks Equity Research

Diebold Nixdorf, Incorporated DBD will report first-quarter 2019 results on Apr 30 before the bell. The company operates a seasonal business with the fourth quarter being the strongest and first quarter the weakest.

What’s Up This Time?

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.04 billion, indicating a decrease of 2.5% from the year-ago quarter’s actual figure. Apart from seasonality, lower volume in Asia is likely to weigh on the top-line performance.

Diebold Nixdorf, Incorporated Revenue (TTM)

 

Diebold Nixdorf, Incorporated Revenue (TTM) | Diebold Nixdorf, Incorporated Quote

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Operating performance should improve driven by benefits of savings from the company’s DN Now transformation initiatives.

Major initiatives under DN Now include transition to a customer-centric operating model, service modernization, better working capital management, reduction in administrative expenses, streamlining of the product range, and introduction of next-generation product capabilities and cloud-based software offerings. Driven by these initiatives, shares of the company have gained more than 100% year to date, significantly outperforming the 25.6% rally of the industry it belongs to.

Diebold Nixdorf targets annualized savings of $400 million through 2021, of which $160 million is expected to be realized in 2019.

Seasonal impacts are expected on the bottom line in the to-be-reported quarter, the Zacks Consensus Estimate for which is pegged at a loss of 35 cents per share. The consensus mark indicates a deterioration of more than 100% from the year-ago reported figure.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Diebold Nixdorf has an Earnings ESP of +5.71% and a Zacks Rank #2.

Other Stocks That Warrant a Look

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:

SailPoint Technologies SAIL has an Earnings ESP of +100.00% and a Zacks Rank #1. The company is scheduled to report results on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

EVERTEC EVTC has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.

Delphi Technologies DLPH has an Earnings ESP of +1.56% and a Zacks Rank #3. The company is scheduled to report results on May 2.

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Diebold Nixdorf, Incorporated (DBD) : Free Stock Analysis Report
 
Delphi Technologies PLC (DLPH) : Free Stock Analysis Report
 
Evertec, Inc. (EVTC) : Free Stock Analysis Report
 
SailPoint Technologies Holdings, Inc. (SAIL) : Free Stock Analysis Report
 
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Zacks Investment Research