UPDATE 1-Diebold Q2 results beat Street view

* Q2 adj EPS of $0.49 beat estimates by $0.17

* Q2 revenue beats Street expectations

* Cuts upper end of '09 adj EPS view

* Shares up as much as 8 pct

Aug 4 (Reuters) - Diebold Inc (DBD.N), a maker of automated teller machines, posted a quarterly profit that blew past Wall Street expectations helped by lower expenses, sending its shares up as much as 8 percent.

However, the company cut the upper end of its adjusted 2009 earnings outlook to $1.70 to $1.90 from prior expectations of $1.70 to $2.00. It also forecast a slightly wider decline in its 2009 sales.

It now expects sales to decline by 13 percent to 7 percent from prior expectations of 13 percent to 6 percent for 2009.

Analysts were looking for earnings of $1.76 a share, excluding items, on revenue of $2.88 billion.

"For the remainder of this year..., we don't expect any significant rebound in demand as spending remains tight with our financial customers," Chief Executive Thomas Swidarski said in a statement.

The North Canton, Ohio-based company, which competes with NCR Corp (NCR.N) and Wincor-Nixdorf (WING.DE) reported second-quarter income from continued operations of $30.6 million, or 46 cents per share.

Revenue fell 9 percent to $700.5 million.

Excluding items, the company reported earnings from continued operations of 49 cents, down 29 percent from year-ago period.

Analysts expected earnings of 32 cents a share, excluding exceptional items, on revenue of $692.9 million, according to Reuters Estimates.

The company's primary customers include banks and financial institutions, as well as public libraries, government agencies, utilities and various retail outlets.

Shares of the company were up $2.17 at $30.54 in early morning trade on the New York Stock Exchange. (Reporting by Shrutika Verma in Bangalore; Editing by Maju Samuel)