ATMs and security systems provider Diebold Inc. (DBD), said Monday its second quarter profit grew from last year on a 12 percent growth in sales, partly offset by lower gross margin and increased tax expense. Nonetheless, quarterly earnings missed Street estimates by a wide margin, while sales exceeded expectations.
Moving forward, Diebold cut its earnings and sales outlook for the full year 2012, citing currency impacts and a delay of anticipated additional revenue from Brazil election systems.
Investors were disappointed with the results and weak outlook, dragging down Diebold shares by more than 10 percent in afternoon trade on the New York Stock Exchange.
Diebold's revenues for the quarter were helped by Financial self-service segment with a 15.5 percent increase in sales when compared to last year, while Security solutions revenue slid 2.7 percent.
Revenues from North America climbed 18 percent, while Latin America surged 31.5 percent year-over-year. Revenues from Asia Pacific were flat, while EMEA slumped 18.5 percent.
North Canton, Ohio-based Diebold reported second quarter net income of $26.5 million or $0.41 per share, up from $20.8 million or $0.32 per share last year.
Excluding items, adjusted earnings for the quarter were $0.49 per share, compared to $0.44 per share a year ago. On average, six analysts polled by Thomson Reuters expected earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $743 million, compared to $662.4 million in the prior year quarter. Analysts expected revenues of $731.23 million for the quarter
For fiscal year 2012, Diebold now expects net earnings of $2.31 to $2.44 per share and adjusted earnings of $2.50 to $2.60 per share. Earlier, the company estimated net earnings of $2.38 to $2.61 per share and adjusted earnings of $2.50 to $2.70 per share. Analysts currently expect earnings of $2.68 per share for the year.
Full year revenues are now expected to grow 6 to 8 percent, compared to prior guidance of 7 to 10 percent.
DBD is trading at $32.64, down $3.68 or 10.13%, on a volume of 1.2 million shares on the NYSE.
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