The chart below shows how DBD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DBD sees a -4.54% change in stock price 10 days leading up to the earnings, and a +3.87% change 10 days following the report. On the earnings day itself, the stock moves by +7.91%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong EBITDA and Cash Flow: Adjusted EBITDA reached $452 million, exceeding the high end of guidance, and free cash flow was $109 million, marking the best performance since 2016.
Strong Product Demand: The company ended the year with a product backlog of approximately $800 million, representing about six months of product revenue, indicating strong demand.
Service Revenue Breakdown: In 2024, service revenue was $2.15 billion, accounting for 55% of total revenue, with 70% of that being recurring, showcasing a stable revenue stream.
Gross Margin Improvement: Gross margin improved by 300 basis points year-over-year, ending at 25.3%, driven by pricing discipline and lean operating principles.
Share Repurchase Authorization: A new $100 million share repurchase authorization was announced, reflecting a commitment to returning capital to shareholders and enhancing shareholder value.
Negative
Revenue Growth Outlook: Revenue for 2024 was $3,750,000,000, but the company expects total revenue to be flat to up low single digits in 2025, indicating a slowdown in growth.
Foreign Exchange Impact on Revenue: The company anticipates a 3% to 4% unfavorable impact from foreign exchange, translating to an estimated $115,000,000 negative impact on revenue year over year.
Retail Segment Challenges: Despite a strong performance in 2024, the retail segment continues to face macroeconomic challenges, with significant declines noted in Europe, particularly in the UK and Ireland.
Cash Recycling Adoption Rates: The transition to cash recycling technology is still in early stages, with only 55% of shipments expected to be recyclers in the near future, indicating slow adoption rates.
Increased Operating Expenses: Operating expenses increased due to a full year of normalized incentive compensation, which negatively impacted overall cost management.
Earnings call transcript: Diebold Nixdorf Q4 2024 misses EPS forecast
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