Diebold Nixdorf's Q2 Earnings Preview: Analysts Expect Strong Backlog, Cash Flow Figures and Tariff Impacts

Wedbush analyst Antoine Legault has initiated coverage of Diebold (DBD) with an Outperform rating and a $60 price target ahead of Q2 earnings. Key areas of interest include backlog and cash flow figures, evolving tariff regulations, and potential order accelerations. The analyst will also be attentive to management's updates on a possible increase in orders linked to a refresh cycle and progress towards a service-oriented model.

Wedbush analyst Antoine Legault has initiated coverage of Diebold Nixdorf Inc (DBD) with an Outperform rating and a $60 price target ahead of the company's Q2 earnings announcement scheduled for May 7, 2025. The analyst highlights several key areas of interest, including the company's backlog and cash flow figures, the impact of evolving tariff regulations, and potential order accelerations linked to a refresh cycle.

Legault will also be closely monitoring management's updates on a possible increase in orders linked to the refresh cycle and progress towards a service-oriented model. Additionally, the analyst will be attentive to any growth in software integration and added value, which are seen as crucial for Diebold's ongoing strategy and market standing.

According to Wall Street analysts, the average target price for Diebold Nixdorf Inc (DBD) is $72.33, with a high estimate of $80.00 and a low estimate of $60.00. The average target implies an upside of 22.52% from the current price of $59.04 [1]. The consensus recommendation from brokerage firms is currently 1.7, indicating an Outperform status [1].

Diebold Nixdorf Inc (DBD) reported a strong start to 2025 with Q1 performance on track with expectations. The company saw a significant 36% year-over-year growth in product orders, driven by automation and self-service technologies. Gross margin expanded by 20 basis points year over year and 140 basis points sequentially. The company generated $6 million in positive free cash flow, marking the best first quarter in the company's history. Diebold initiated a $100 million share repurchase program, repurchasing $8 million of DN shares in March [2].

However, geopolitical factors and new tariff policies pose potential impacts on the supply chain. There is a $20 million estimated gross impact from tariffs for 2025, with mitigation efforts only expected to cover up to 50%. The macro environment continues to impact Retail product revenue, with signs of stabilization only pointing to a second-half recovery. Foreign exchange expenses were significant, with an $8.5 million impact due to currency fluctuations. Operating expenses increased year over year due to higher incentive compensation and investments in strategic growth initiatives [2].

In conclusion, Wedbush's initiation of coverage on Diebold Nixdorf Inc with an Outperform rating reflects the firm's positive outlook on the company's growth prospects and strategic position within the financial services market. However, investors should carefully consider the potential risks and monitor the company's performance closely.

References:
[1] https://www.gurufocus.com/news/2993434/diebold-dbd-receives-positive-outlook-from-wedbush-ahead-of-q2-earnings-dbd-stock-news
[2] https://www.ainvest.com/news/affirm-holdings-oppenheimer-initiates-coverage-outperform-rating-80-price-target-2507/