Send me real-time posts from this site at my email
Motley Fool

Why Diebold Nixdorf Shares Popped 35% Today

What happened

Shares of connected banking company Diebold Nixdorf (NYSE: DBD) jumped as much as 35.4% in early trading Thursday after management announced guidance for 2020 and 2021. At 3:20 p.m. EST, shares were still up 22.9% for the day and holding steady.

So what

Management said that revenue for 2019 would be $4.4 billion with free cash flow of $70 million to $100 million, as it has previously guided. But in 2020, it expects $4.2 billion to $4.3 billion in revenue, including about $100 million lost from divestitures, and free cash flow of $100 million to $130 million.

Image source: Getty Images.

In 2021, management said it expects revenue growth to be 2% to 4%, which is at the low end of previously announced growth targets. But free cash flow is expected to be over $200 million, and that's what investors are excited about today.

Now what

Losing revenue isn't a great trend, but Diebold Nixdorf is clearly making big strides in growing cash flow. For a company with a $730 million market cap, even after today's pop, a $200 million free cash flow target is extremely strong. With financial leverage coming down, the company has more flexibility to grow, and investors are really enthused.

10 stocks we like better than Diebold Nixdorf
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Diebold Nixdorf wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of December 1, 2019

Travis Hoium 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.


Popular posts

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue