Why Diebold Shares Died
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 Diebold (NYS: DBD) plunged today by as much as 13% after the company reported earnings and had to trim its outlook.
So what: Revenue in the second quarter rose 12% to $743.2 million, resulting in earnings per share of $0.41. The company was profitable in the tough Europe, Middle East, and Africa geographical segment and is on track to hit its goal of black ink in that region for the full year.
Now what: Diebold also reduced its full-year guidance because of a large order of voting terminals from the Brazilian government that is being pushed into next year. The company was planning on delivering 60,000 of these units this year but has delivered only 35,000, and the remainder won't be recognized until 2013. Full -ear revenue is expected to increase by 6% to 8%, down from the prior range of 7% to 10%.
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The article Why Diebold Shares Died originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.