Diebold shares jump on strong 3rd quarter

Diebold shares jump on better-than-expected 3rd quarter

Associated Press

NEWS: ATM maker Diebold Inc. reported a better-than-expected third quarter, helped by cost-cutting, that sent its shares higher Wednesday.

DETAILS: The company said it benefited from ongoing cost-reduction efforts. Diebold plans to reinvest half of its savings back into the company and said it has yet to fully ramp up its transformation efforts.

Diebold also said Wednesday that its chief financial officer, Bradley Richardson, is leaving the company. Christopher Chapman, its vice president of global finance, will fill in on an interim basis beginning Nov. 6 while the company conducts a search for a permanent replacement.

NUMBERS: The company reported a loss of $21.7 million, or 34 cents per share, for the quarter that ended Sept. 30. That compares with net income of $16.2 million, or 25 cents per share, last year. On an adjusted basis, it earned 56 cents per share versus 37 cents per share last year from continuing operations.

Total revenue slipped to $705.4 million from $709.9 million.

Analysts polled by FactSet were anticipating adjusted earnings of 42 cents per share on revenue of $685.5 million.

FUTURE: Diebold said it expects to earn $1.30 to $1.40 per share on an adjusted basis. Analysts were forecasting $1.34 per share. It also narrowed its revenue forecast for the year, saying it expects total revenue will fall 5 to 6 percent, versus its prior forecast of a 5 to 7 percent decline.

STOCK: Shares of the North Canyon, Ohio, company jumped 70 cents, more than 2 percent, amid a broader market decline.

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