Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, May 3, 2013

Article Excerpt

DIEBOLD INC., $29.66, New York symbol DBD, makes automated teller machines (ATMs), vaults and building-security systems. This week, the company announced a major new restructuring plan, including job cuts, selling certain plants and merging customer service activities. These moves should cut its annual costs by $100 million to $150 million by the end of 2015. The lower costs will make Diebold more profitable, particularly as the uncertain economy prompts banks to cut spending on new ATMs. In the three months ended March 31, 2013, Diebold’s revenue fell 9.3%, to $633.5 million from $698.5 million a year earlier. The company lost $13.4 million, or $0.21 a share. If you exclude restructuring costs and other unusual items, it would have lost $0.04 a share. That’s much worse than the consensus earnings estimate of $0.16 a share. A year earlier, Diebold earned $45.2 million, or $0.71 a share. Diebold’s earnings should improve over the next few months as it starts to realize the savings from…