Diebold Nixdorf misses by $0.08, beats on revs; guides FY19 revs below consensus
The ATM maker and payment services company said it expects to be free cash flow "break even" next year, while reporting fourth-quarter sales that beat expectations despite a surprise adjusted loss.
The net loss widened to $123.6 million, or $1.62 a share, from $110.1 million, or $1.46 a share, in the same period a year ago. Excluding non-recurring items, the adjusted loss per share was 8 cents, while the FactSet consensus was break even. Total sales rose 3.2% to $1.29 billion, above the FactSet consensus of $1.23 billion, as services fell 3.0% to $726.9 million and products revenue grew 12.4% to $562.9 million. For 2019, the company expects "break even" free cash flow, after using $162.6 million in cash in 2018. The company expects revenue of $4.4 billion to $4.5 billion, below the FactSet consensus of $4.6 billion, and raised its three-year cost cutting target to $400 million from $250 million. The stock has rocketed 37.4% over the past three months through Tuesday, but has tumbled 63.5% over the past 12 months, while the S&P 500 SPX, +1.29% has gained 3.1% over the past year.
- Reports Q4 (Dec) loss of $0.08 per share, excluding non-recurring items, $0.08 worse than the S&P Capital IQ Consensus of ($0.00); revenues rose 3.2% year/year to $1.29 bln vs the $1.22 bln S&P Capital IQ Consensus.
- Co issues downside guidance for FY19, sees FY19 revs of $4.4-4.5 bln vs. $4.56 bln S&P Capital IQ Consensus.
- Co sees FY19 adjusted EBITDA of $380-420 mln.
- "Revenue growth was underpinned by strength in Americas Banking and Retail. I am especially pleased with our ability to generate higher profits as we begin to realize the benefits of our DN Now initiatives. Adjusted EBITDA in the quarter increased nearly 21 percent, and the associated margin improved by 140 basis points from the prior year quarter."