Diebold Nixdorf, Incorporated [NYSE: DBD] was one of the big gainers in Thursday’s trading session. The stock closed the day with gains of 27.99%. The bullish momentum in DBD was so strong that it opened the day with a huge gap up.
The main reason behind this gap is the company’s better than expected Q2 earnings report. The company reported earnings of $0.06 per share, against an analyst expectation of $0.15 per share loss. This is a huge improvement compared to the same quarter last year when the company reported a loss of $0.21 per share. The company also reported revenues of $1.15 billion, which beat analyst expectations by 8.83%. It also represents a significant jump, as compared to the same quarter last year, when the company reported revenues of $1.11 billion.
In reporting its earnings, the company also took note of some major contracts that it has won in Europe and Asia. One such contract is with German firm, Commerzbank. The contract is for a couple of hundred ATMs and comes with a multiyear software support and maintenance package. The company also has contracts with Saudi Arabia’s top 3 bank, contracts that are worth roughly $10 million. Others are in Singapore, Kazakhstan, and Africa.
From the charts, DBD is likely to be in play in the near term especially after a significant gap up. In the day, the key level to watch will be Thursday’s close of $13.17. That’s because, it’s a level where DBD has reversed at, after a previous rally. This means there could be some significant profit-taking at this level. However, if in the day, the stock pushes and sustains above this level, it would be an indicator that bulls are still in control, and could sustain yesterday’s rally. It will also be important to watch the volume, which rose exponentially on Thursday to hit 5.36 million shares.
Like I always say, “Trade the Chart and not the Stock.”