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Why Diebold Nixdorf Stock Bounced 15% Today

Rich Smith, The Motley Fool

What happened

After the fall comes the bounce.

ATM manufacturer Diebold Nixdorf (NYSE: DBD), shares of which more than quintupled in value earlier this year, lost 28% of that value over the two days following its earnings report this week. Now, however, the stock appears to be enjoying something of a rebound. On Thursday, Diebold gained 6.5%. Today, the stock closed another 14.7% higher.

Bouncing ball

Image source: Getty Images.

So what

This still leaves Diebold shareholders a good 8.4% poorer than they were when the week began. Still, the rebound suggests that some investors may have begun looking past the stock's "negative momentum" earlier in the week and toward the future in hopes of better news to come.

In that regard, Diebold told investors on Tuesday that despite losing money in the first quarter, it still expects to book revenue of between $4.4 billion and $4.5 billion in 2019, and to stop burning cash, returning to free cash flow "breakeven" by the end of the year.

Now what

And in that regard, it's worth noting that although Diebold didn't promise any particular GAAP earnings number, analyst estimates show that they will be looking for Diebold to earn $0.30 per share this year. It's going to be hard for Diebold to climb out of the hole it's dug for itself in Q1. On the plus side, all Wall Street will be looking for in the company's next quarterly report (for Q2) is another loss -- $0.12.

So, at least the bar's set low.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.