- Diebold Nixdorf ( DBD ) rallies higher during the day's trading after it reaffirms and raises FY 2022 guidance.
- Adj. total net sales dropped 10.3% Y/Y but up 3% sequentially, reflecting sustained customer demand for the company’s products and services.
- Backlog increased 24% closing Q2 at a record of ~$1.4B, fueled by continued demand for our Banking & Retail products.
- Non-GAAP Gross Profit and Margin increased sequentially, driven by price increases beginning to take hold. However, they decreased Y/Y due primarily to FX, lower volume, and higher non-GAAP non-billable inflation associated with supply chain disruptions.
- Non-GAAP Operating Profit and Margin increased sequentially driven by our focus on cost management and pricing, but decreased Y/Y as a result of lower gross profit despite operating expense favorability.
- New operating model well underway, with ~$120M of annualized costs either removed or in a transition period, equating to roughly $12M of non-GAAP savings in Q2 and representing ~80% of the company’s previously disclosed $150M+ cost savings plan.
- “We remain encouraged by order entry activity, a forward-looking indicator of demand, and are confident in our operating model as we continue to implement cost savings and additional operational rigor to accelerate the pace of backlog conversion to revenue and free cash flow.” said Jeff Rutherford, executive vice president and CFO.
- Raises 2022 Outlook: Revenue now expected between $3.55B - $3.75B vs. prior outlook of $3.7B - $3.9B, vs. consensus of $3.75B , Reaffirm Adjusted EBITDA of $320M - $350M, Non-GAAP Free Cash Flow is expected at Break even and return on Invested Capital to be ~13%.
- Previously: Diebold Nixdorf Non-GAAP EPS of $0.38, revenue of $846M misses by $40.96M, revises FY revenue outlook (Aug. 2)
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Diebold Nixdorf rallies 19% on raised 2022 guidance