In This Article:
It's been a pretty great week for Diebold Nixdorf, Incorporated (NYSE:DBD) shareholders, with its shares surging 10% to US$21.27 in the week since its latest quarterly results. It was an okay report, and revenues came in at US$943m, approximately in line with analyst estimates leading up to the results announcement. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Diebold Nixdorf
Taking into account the latest results, the current consensus from Diebold Nixdorf's three analysts is for revenues of US$3.85b in 2024. This would reflect a reasonable 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to crater 86% to US$4.28 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.87b and earnings per share (EPS) of US$3.71 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 20% to US$27.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Diebold Nixdorf, with the most bullish analyst valuing it at US$29.00 and the most bearish at US$25.00 per share. 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. One thing stands out from these estimates, which is that Diebold Nixdorf is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.3% annualised growth until the end of 2024. If achieved, this would be a much better result than the 5.9% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.5% per year. So although Diebold Nixdorf's revenue growth is expected to improve, it is still expected to grow slower than the industry.