Bank / Credit Union
Diebold’s Q3 beats with margin growth, narrows and raises FY view
October 29, 2020
Diebold Nixdorf Q3 beat the top and bottom lines and growth in orders, gross profit, operating profit, and margins.
Non-GAAP gross profit was up 3.4% Y/Y to $284.8M and operating profit was up 35% to $89.5M. Operating margin was up 280 bps to 9%. Adjusted EBITDA increased 15.2% to $113.1M, according to a report in Seeking Alpha.
"As we prepare to enter 2021 -- the final year of our transformation -- we are executing a clear path to value creation through continued operating efficiencies and an increased focus on revenue growth. We are energized by our growth opportunities, with differentiated solutions including DN Series ATMs, managed services, retail self-checkout and Vynamic software,"Gerrard Schmid, CEO said in the report.
"In addition, we will be significantly reducing our restructuring spend and increasing our free cash flow generation, with a long-term goal of converting 50% of adjusted EBITDA to levered free cash flow. Despite a challenging environment, our operational rigor and resiliency of our teams give us the confidence to successfully build upon the foundation we have established," Schmid said.
Full-year outlook includes revenue of $3.85B, prior: $3.7-3.9B, adjusted EBITDA of $440M, prior: $400-440M; consensus: $441.3M. FCF is now expected at $30M, the top end of the prior guidance range.
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Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
