- Diebold Nixdorf (DBD) stock price rises 12% as Q3 showed a revenue of $810.4M (-15.4% Y/Y) misses consensus by $33.2M.
- The decrease was primarily due to the foreign currency translation impact of the declining value of the Euro in comparison to the U.S. dollar and longer lead times resulting from global supply chain and logistics issues.
- Stable demand, evidenced by product backlog of ~$1.4B at the end of Q3.
- New operating model well underway, having executed and identified ~$170M of savings, and modeling an additional ~$25M of savings from the company's previously disclosed cost savings plan.
- Entered into a Transaction Support Agreement (or TSA) with lenders to refinance debt.
- Non-GAAP operating profit declined 26.2% to $60M and Non-GAAP operating margin decreased 100 bps to 7.5%; due primarily to revenue delays and net inflationary costs.
- Free cash use of $179.6M was unfavorable by $22.1M vs. prior year quarter reflecting reduced profitability and timing of disbursements, partially offset by improved collections.
- Octavio Marquez, Diebold Nixdorf president and CEO, said: "Since March of this year, our fundamental objectives have remained focused on taking important steps to strengthen our business and competitive position. In the third quarter, while the macroeconomic environment presented widely discussed challenges, the combination of stable demand, industry-leading solutions, progress with the TSA, and our ongoing cost reductions and operational improvements contributed to Diebold Nixdorf's ongoing confidence in our strategic operating model. We have solid financial fundamentals and have consistently seen steady demand for our product and solution set."
- Non-GAAP EPS of -$0.12 misses consensus by $0.36.
- Previously (Nov. 8): Diebold Nixdorf Non-GAAP EPS of -$0.12 misses by $0.36, revenue of $810.4M misses by $33.2M
- Contributor comments on the stock: 'Diebold Nixdorf: Cash Machine Maker Out Of Cash'