The Diebold Nixdorf, Incorporated (NYSE:DBD) Yearly Results Are Out And Analysts Have Published New Forecasts
As you might know, Diebold Nixdorf, Incorporated (NYSE:DBD) recently reported its full-year numbers. Revenues came in at US$3.9b, in line with expectations, while statutory losses per share were substantially higher than expected, at US$3.47 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Diebold Nixdorf after the latest results.
View our latest analysis for Diebold Nixdorf
Following the latest results, Diebold Nixdorf's three analysts are now forecasting revenues of US$4.09b in 2021. This would be a credible 4.8% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Diebold Nixdorf forecast to report a statutory profit of US$1.16 per share. Before this earnings report, the analysts had been forecasting revenues of US$4.09b and earnings per share (EPS) of US$0.76 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$17.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Diebold Nixdorf analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$15.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Diebold Nixdorf is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Diebold Nixdorf's revenue growth is expected to slow, with forecast 4.8% increase next year well below the historical 8.4%p.a. growth over the last five years. Compare this to the 67 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.5% per year. So it's pretty clear that, while Diebold Nixdorf's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Diebold Nixdorf's earnings potential next year. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$17.00, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Diebold Nixdorf going out to 2022, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Diebold Nixdorf (including 1 which makes us a bit uncomfortable) .
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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