Diebold Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ATM maker Diebold (NYS: DBD) climbed as much as 11% today after its quarterly results and full-year outlook topped Wall Street expectations.

So what: Diebold's big fourth-quarter beat -- adjusted EPS of $1.27 versus the consensus of just $0.84 -- suggests that its recent focus on ATM innovation continues to pay off handsomely. In fact, the shares are hitting a new three-year high on the market-thumping results.

Now what: Management now sees full-year 2012 EPS of $2.30-$2.50, which is also ahead of analyst estimates of $2.26. "As we look to 2012, I am encouraged by how our financial self-service business is growing, and we are developing new innovations to help drive further growth," CEO Thomas Swidarski said. Given the stock's now roughly 30% year-to-date return, however, I'd wait for a pullback before buying into that momentum.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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